Aereo, a new start-up with $20.5 million in funding led by Barry Diller's IAC, is offering New York City-area customers a way to watch broadcast TV over the Internet, Brian Stelter reports for the New York Times.

The company's service will cost customers $12 a month and allow them access to Fox, ABC, NBC and CBS, as well as an Internet DVR.

Combined with Netflix, the service would cost ~$20 a month, but you'd basically have zero access to programming form networks like ESPN, HBO and other cable giants.

You'll be able to use Aereo on phones, tablets and the Internet-connected TV sets. Roku and Apple TV will be supported.

And a strange detail from Stelter's story:

In an undisclosed location in New York City the company has arrayed thousands of tiny TV antennas — each one roughly the size of a thumb — so that each subscriber has an individual antenna. That way, the company says, it complies with laws involving the exhibition of copyrighted content.

Despite this care taken, Aereo CEO and founder Chet Kanojia expects legal challenges.

While this sounds like an interesting idea, we find it hard to believe people who really like TV would be willing to put up with such a limited TV selection. And the people that don't like TV, will skip out on this.

Further, you can get all the broadcast channels you want for free over the air. Why pay?

Please follow SAI: Media on Twitter and Facebook.

Join the conversation about this story »

See Also:

• INTERNET SCHMINTERNET: These Old Media Titans Are Still Ridiculously Rich
• This Is Why Google TV Won't Happen
• Chelsea Clinton Joins IAC's Board