Quantcast
Get breaking news alerts via email

Click here to manage your alerts
Aereo.com is a New York City-based television service that beams TV channels straight to your computer or mobile device without requiring a cable TV subscription. The service is soon coming to Salt Lake City. A judge issued a stay on Feb. 19 requiring Aereo to cease broadcasting. j=biz.aereo.011112
Aereo likely to go belly up if it loses court battle
Tech » Television service will go before the U.S. Supreme Court later this month.
First Published Apr 02 2014 10:29 am • Last Updated Apr 02 2014 04:38 pm

If Aereo, the Internet-based television streaming service that was temporarily shut down in Utah last month, loses its battle in the U.S. Supreme Court, the company will be "finished," said its lead investor, Barry Diller.

Diller, a media executive and former head of Paramount and Fox, told Bloomberg Television that the upcoming Supreme Court battle will likely determine the fate of the company.

Join the Discussion
Post a Comment

"I believe so. If we lose, we’re finished … it’s very possible that there’s some salvage," he said. "It probably would not be able to continue in business."

Aereo is the controversial service that broadcasts local television feeds to viewers by taking the digital over-the-air feeds and delivering them over the Internet. Users can watch the stations on their computers and mobile devices with a monthly subscription, completely bypassing cable and satellite providers.

The service, which costs $8 or $12 per month, was launched last year in Utah but immediately was the subject of a lawsuit filed by local television stations KTVX Channel 4, KUTV Channel 2, KUCW Channel 30 and KSTU Channel 13, claiming Aereo violates copyright law.

Aereo, however, believes it has found a loophole with its technology, which assigns one small dime-sized antenna to each customer.

Last month, a U.S. District Court Judge in Salt Lake City ruled that the company does in fact violate copyright law and ordered that the service be shut down temporarily in Utah and Denver while the U.S. Supreme Court deliberates on its case. The Supreme Court case involves a lawsuit filed by all the major television networks, including CBS, NBC, ABC and Fox.

If the court rules in favor of the networks, then Aereo would be required to pay them retransmission fees in order to carry their video signals.

"We could probably pay retransmission consent dollars if we could make a deal with broadcasters. We probably could," Diller said. "But the value proposition would go out of the game because Aereo is a low-cost method of receiving over-the-air broadcasting. That’s the platform."

vince@sltrib.com


story continues below
story continues below

Google+: +Vincent Horiuchi



Copyright 2014 The Salt Lake Tribune. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Top Reader Comments Read All Comments Post a Comment
Click here to read all comments   Click here to post a comment


About Reader Comments


Reader comments on sltrib.com are the opinions of the writer, not The Salt Lake Tribune. We will delete comments containing obscenities, personal attacks and inappropriate or offensive remarks. Flagrant or repeat violators will be banned. If you see an objectionable comment, please alert us by clicking the arrow on the upper right side of the comment and selecting "Flag comment as inappropriate". If you've recently registered with Disqus or aren't seeing your comments immediately, you may need to verify your email address. To do so, visit disqus.com/account.
See more about comments here.
Staying Connected
Videos
Jobs
Contests and Promotions
  • Search Obituaries
  • Place an Obituary

  • Search Cars
  • Search Homes
  • Search Jobs
  • Search Marketplace
  • Search Legal Notices

  • Other Services
  • Advertise With Us
  • Subscribe to the Newspaper
  • Access your e-Edition
  • Frequently Asked Questions
  • Contact a newsroom staff member
  • Access the Trib Archives
  • Privacy Policy
  • Missing your paper? Need to place your paper on vacation hold? For this and any other subscription related needs, click here or call 801.204.6100.