C.E.S. 2013: Aereo Announces Expansion, $38 Million in Financing Aereo, the ambitious New York start-up that pipes live broadcast television to mobile phones, tablets and Web browsers, has so far been available to customers only in its hometown. But on Tuesday, the company said it would begin rolling out its service to 22 cities across the country, including Austin, Tex., Boston and Miami, beginning this spring. Chet Kanojia, Aereo's founder and chief executive, said that the company had been testing the viability of the service since July, when it was made available to anyone in New York who wanted to subscribe. "It was important to learn who these customers are and understand what it means to operate this business," he said. We now have relevant data points that allow us to make the same bet in other cities. Mr. Kanojia made the announcement at a news conference in Las Vegas during the Consumer Electronics Show. He also said that Aereo had closed a $38 million round of financing from IAC/InterActiveCorp and Highland Capital Partners. Previously, the company raised $20.5 million in venture financing from IAC/InterActiveCorp, among others. Barry Diller, IAC's chairman, sits on the start-up's board. Mr. Kanojia said that the company would rely on this financing to build out its network, which is fairly cost-intensive because the company designs and manufactures its own equipment and has to build antenna farms to pick up signals in each city. In addition, Aereo will have to hire employees for each new hub and will eventually introduce marketing campaigns aimed at gaining new customers. Aereo's challenges do not end there. The company has battled lawsuits from broadcasters eager to shut the company down, contending that it violates copyright law. Aereo does not pay for the broadcast content. The broadcasters failed to win an injunction against Aereo in United States District Court in New York last year, so they appealed, and a ruling by an appeals court is expected in the next month or two. The case may go to trial later this year. In the meantime, a separate ruling in California last month has given the broadcasters some hope. A federal court in California issued an injunction against an Aereo-like service named Aereokiller, backed by the billionaire Alkiviades David. Aereokiller appealed the decision, but if the California ruling is affirmed "it would provide insurance for broadcasters against an ultimate loss" in the New York case against Aereo, a Guggenheim Partners analyst, Paul Gallant, wrote in an investors' note last month, because it would create a split between two circuit courts and "significantly increase the odds that the Supreme Court would agree to hear the case." But Mr. Kanojia said the company was confident in its plans to move forward and said its current road map would extend its potential market to 90 million consumers. Currently, Aereo offers a tiered subscription plan that starts at $8 a month. Its service is compatible with iOS devices, Apple TV, Roku boxes and popular Web browsers. The company also lets people buy day passes to the service for $1. Mr. Kanojia declined to disclose how many people had signed up for Aereo so far. Analysts have estimated Aereo's customer base in the low thousands, but Mr. Kanojia said the company had experienced "massive growth" since its public introduction and consistent use among its customers. "This is Phase 1 for expansion," he said. There's much more to come. When Aereo was introduced in New York last year, Mr. Diller said he expected the service to start carrying other content along with over-the-air television channels. Aereo took its first step in that direction last month by adding Bloomberg TV, the business news channel that is also carried by cable and satellite providers.