NEW YORK (AP) - Aereo, a startup that is trying to challenge cable and satellite TV packages with an $8-a-month offering over the Internet, says it will expand to Chicago in September. The service started in New York last year and expanded to Boston and Atlanta this spring. Service in the Chicago area will begin Sept. 13 and will come with several Chicago-area broadcast stations plus Bloomberg TV. Eligibility is limited to 16 counties in Illinois and Indiana. Aereo converts television signals into computer data and sends them over the Internet to subscribers' computers and mobile devices. Subscribers can watch channels live or record them with an Internet-based digital video recorder. Viewers can pause and rewind live television. Broadcasters have sued Aereo for copyright infringement, but Aereo has won key court rulings.