Aereo Verdict: Supreme Court Says Streaming TV Service Is Illegal

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

Aereo Verdict: Supreme Court Says Streaming TV Service Is Illegal

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

Aereo Aereo Verdict: Supreme Court Says Streaming TV Service Is Illegal[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:

Endnotes:
  1. has dealt a likely fatal blow: http://www.usatoday.com/story/news/nation/2014/06/25/supreme-court-tv-internet-aereo-copyright/10022797/
  2. [Image]: http://investorplace.com/wp-content/uploads/2013/08/Aereo.png
  3. DIS: /stock-quotes/DIS-stock-quote/
  4. FOX: /stock-quotes/FOX-stock-quote/
  5. CMCSA: /stock-quotes/CMCSA-stock-quote/
  6. CBS: /stock-quotes/CBS-stock-quote/
  7. Aereo Review: What Is It? Where Can I Get It?: http://investorplace.com/2014/04/aereo-aereo-review/
  8. ProtectMyAntenna: New Aereo Website Presents Its Case to Consumers: http://investorplace.com/2014/04/protectmyantenna-new-aereo-website-presents-case-consumers/
  9. If Aereo Wins, Major Broadcasters May Head to Pay-TV: http://investorplace.com/2014/01/aereo-wins-major-broadcasters-may-head-pay-tv/
  10. Aereo to Launch in Cincinnati on Jan. 21: http://investorplace.com/2014/01/aereo-launch-cincinnati-jan-21/
  11. Aereo May Mean the End of NFL and MLB on Free TV: http://investorplace.com/2013/11/aereo-may-mean-end-nfl-mlb-free-tv/

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