Aereo Verdict: Supreme Court Says Streaming TV Service Is Illegal

by Christopher Freeburn | June 25, 2014 11:34 am

In a 6-3 ruling, the U.S. Supreme Court has dealt a likely fatal blow[1] to TV streaming service Aereo.

[2]The majority of justices found that the internet startup — which streams TV broadcasts captured from over-the-air transmissions to subscribers — operates identically to a cable system. Aereo does not pay retransmission fees to broadcasters, whose content it streams, USA TODAY notes.

Aereo disputes the comparison to a cable system, noting that its subscribers get their own tiny antenna to capture broadcast programming.

Broadcasters, including Disney (DIS[3]), Fox (FOX[4]), Comcast’s (CMCSA[5]) and CBS (CBS[6]), sued Aereo claiming it was violating their rights by streaming their content to subscribers without paying retransmission fees. Aereo is backed by media magnate Barry Diller.

Three justicies — Antonin Scalia, Clarence Thomas and Samuel Alito — dissented from the majority, arguing that Aereo represented a loophole in current copyright law and that it was the role of Congress to deal with such issues, not the court.

In Wednesday morning trading, CBS jumped almost 4%, while CMCSA, DIS and FOX shares rose more than 1%.

More Aereo News:

• Aereo Review: What Is It? Where Can I Get It?[7]
• ProtectMyAntenna: New Aereo Website Presents Its Case to Consumers[8]
• If Aereo Wins, Major Broadcasters May Head to Pay-TV[9]
• Aereo to Launch in Cincinnati on Jan. 21[10]
• Aereo May Mean the End of NFL and MLB on Free TV[11]

Source URL: https://investorplace.com/2014/06/aereo-verdict-supreme-court-says-streaming-tv-service-illegal/

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