& cplSiteName &

Supreme Court Halts Aereo's Flight

Mari Silbey
6/25/2014
50%
50%

After years of legal wrangling, the US Supreme Court has finally dealt what may be the fatal blow to video streaming company Aereo.

In a much anticipated 6-3 decision, the high court announced that Aereo Inc. 's system of using dime-sized antennas to capture over-the-air (OTA) TV signals and then deliver them to consumers as individual online streams is equivalent to creating a public performance. As such, Aereo must pay retransmission fees to broadcasters, just like any cable TV, satellite TV, or telco TV provider. (See CBS Financials Fuel Aereo Angst.)

From the official Syllabus or summary of the decision in the case of American Broadcasting Cos., Inc., Et Al. v. Aereo, Inc., FKA Bamboom Labs, Inc:

    Aereo claims that because it transmits from user-specific copies, using individually-assigned antennas, and because each transmission is available to only one subscriber, it does not transmit a performance 'to the public.' Viewed in terms of Congress' regulatory objectives, these behind-the-scenes technological differences do not distinguish Aereo's system from cable systems, which do perform publicly. Congress would as much have intended to protect a copyright holder from the unlicensed activities of Aereo as from those of cable companies.

The Supreme Court's decision, which reversed a ruling by the United States Court of Appeals for the Second Circuit, was written by Justice Stephen Breyer. Justice Antonin Scalia led the dissent, joined by Justice Clarence Thomas and Justice Samuel Alito.

Because Aereo has based its entire business model on combining free OTA content with web video in an inexpensive online subscription service, the company now has no way to generate revenue without a significant shift in strategy. Presumably there is still value in Aereo's technical process for capturing video over the air and efficiently transcoding it for delivery over the web. But whether that will translate into a successful business in the future is unclear.

Meanwhile, the ruling is a major win for broadcasters. While OTA networks have historically made the bulk of their money from advertising, their income from licensing fees has grown substantially as a share of total revenue in recent years. If Aereo had prevailed in court, there would have been nothing to prevent other service providers from following a similar model and bypassing retransmission fees to deliver OTA content.

Related posts:

— Mari Silbey, special to Light Reading

(47)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Page 1 / 5   >   >>
jabailo
50%
50%
jabailo,
User Rank: Light Sabre
6/29/2014 | 7:15:57 PM
Re: Intent
There are a lot of things different between city and suburban living.   You pay more, but you get cultural amenities.   It's expensive to own and house a car, but you might not even need one with transit.   On and on it goes.

Yes, it is a disadvantage to living in a tall apartment building admidst a sea of tall apartment buildings when it comes to radio signals.  That is one price to be paid for high density living.   There is no law that I am aware of saying that every citizen of the United States has a right to receive a clear, strong television signal no matter where he lives, and for free.   I would welcome any hyperlink to such a law, if it exists.

You are not required to live in a tall apartment building.  You can live somewhere else, and since there is the option of cable, fiber and satellite...there are things you can do acquire entertainment.    

Even if you were totally isolated from entertainment, there would still be no justification based on current law for you to construct an elaborate system to take a signal, copy it to digital, and send it as a binary stream over the internet without any agreement with the orignal owner. 

The limit of RF is like a fence.   Think of going down a country road.  You see these wooden corral fences.   How hard would it be for you to climb over one of these fences in the middle of nowhere?   Not very hard.   You could easily go onto someone's private property.   But that is not the point.  It is not the responsibility of the owner to do anything more than mark his property.   He should not have to electrify it with barbed wires.  The fence is reasonable information as to where the property line begins and ends.

With broadcast TV, the "property line" ends where the signal ends.   Any attempt to grab it where its strong and reroute it with a different tecnology is violating a property boundary. 

 
brookseven
50%
50%
brookseven,
User Rank: Light Sabre
6/29/2014 | 6:13:47 PM
Re: Intent
jabailo,

The challenge is that apartment dwellers in major cities often can not place antennas or dishes.  Being inside a building means that reception is often poor.  In the old days, apartment buildings encourged people to put antennas on the roof.  Now, not so much.

Your notion of space rental is exactly right and that is Aereo's way around things in my estimation.  Instead of renting the kit required, sell it and rent the space to hold it and power to activate it.  At that point, I think the model ends up at about the same point as they are today.

And I agree with you it is not a disruptive service, just very useful to low end consumers.

seven

 
jabailo
50%
50%
jabailo,
User Rank: Light Sabre
6/29/2014 | 4:56:33 PM
Re: Intent
Is Aero really disruptive?

To me it's like the people who would sell cable descramblers.

They are merely taking a restricted resource, and offering a technology to steal it.

I don't think they have a leg to stand on legally.

The only equivalent of what they are doing is for someone to take a long cable, and run it themselves all the way to someplace near the broadcast antenna.

If you are willing to spend money for the right-of-way to do this and rent space on someone's roof you are free to do so.   I doubt if it would be competitive with a $35/mo satellite tv service!

 
nasimson
50%
50%
nasimson,
User Rank: Light Sabre
6/29/2014 | 4:39:46 PM
Re: Intent
@jabailo:

> I have a carton of eggs.   The truck takes it to the loading dock.  
> Now you come along and take a dozen and put it in your car and
> sell it by the roadside.  How can that be legal?

Not a correct analogy. Do we exactly know on which legal grounds did court decided against Aero?

Disruptive technologies always disrupt the existing business models. Its one of those!
nasimson
50%
50%
nasimson,
User Rank: Light Sabre
6/29/2014 | 2:50:41 AM
Re: Whats Next?
> The service still works, you can still sign up as a new customer

No it does not. Now there's nothing on the website but this letter:

 

wanlord
50%
50%
wanlord,
User Rank: Light Sabre
6/28/2014 | 7:58:21 PM
RE: Intent
I guess they didn't waste time. They stopped streaming & replaced their home page with a letter. Cute little paperclip shaped like their antenna. Somehow I think they have something up their sleeve and this isn't the end...
SachinEE
50%
50%
SachinEE,
User Rank: Light Sabre
6/28/2014 | 5:27:20 AM
RE: Intent
In my view, getting broadcast TV signals over the internet seems like 'not a good idea'. It's not worth the trouble since you can get them through computer browsers. Besides, you can use them almost anywhere you want. We need to start thinking clearly and get our facts and priorities right especially when it comes to chucking any dollar from our pockets. Maybe Aereo should think of renting some space and power to house the consumer equipment rather than sticking to the idea of owning the equipment.
brookseven
50%
50%
brookseven,
User Rank: Light Sabre
6/27/2014 | 4:43:53 PM
Re: Intent
So why do you think that having an external antenna is proscribed. Before there was lots of cable lots of people had external antennas. We are simply talking about a way to wire my antenna to my tv. Seven
mendyk
50%
50%
mendyk,
User Rank: Light Sabre
6/27/2014 | 10:29:50 AM
Re: Whats Next?
Barry Diller (a.k.a. The Money Guy) isn't likely to stick around. Fade to black.
wanlord
50%
50%
wanlord,
User Rank: Light Sabre
6/27/2014 | 9:38:59 AM
Whats Next?
So what happens next? Does Aereo just cease operations/service? When? The service still works, you can still sign up as a new customer, so what are the next steps?

 

 
Page 1 / 5   >   >>
From The Founder
The independent evaluation of Nokia's key virtual network functions (VNFs) was a defining moment for the Finnish giant.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Custom TV
Private Company of the Year - Affirmed Networks

6|27|16   |     |   (0) comments


At BCE 2016, Steve Saunders speaks to Hassan Ahmed about Affirmed's success.
LRTV Custom TV
Energy 2020: Growing Services, Not Consumption

6|24|16   |   07:18   |   (0) comments


Management of power requirements needs to be a key consideration as cable operators deploy new services, says Dan Cooper, vice president of critical infrastructure for Charter Communications and chair of the SCTE/ISBE Standards Program's Energy Management Subcommittee. In this video, Cooper discusses the importance of cable operators and technology partners ...
LRTV Huawei Video Resource Center
Huawei & TDC First to Launch DOCSIS 3.1 Trial in Europe

6|24|16   |     |   (0) comments


To meet the rising demands for high-speed broadband and to tackle fierce competition for 1.5 million household, TDC wanted to upgrade its network to use the latest technology. Using Huawei's DOCSIS 3.1 solution, TDC is now able to offer gigabit speeds to its customers.
LRTV Documentaries
OPNFV Summit: Key Takeaways

6|22|16   |   03:28   |   (0) comments


MANO shortfalls, an increasingly bloated open source ecosystem and the cultural challenges for network operators were among the key takeaways from the OPNFV Summit in Berlin.
LRTV Huawei Video Resource Center
Bringing Ultra Broadband to the South Pacific

6|22|16   |   7:55   |   (0) comments


At Singapore's UBBS 2016 summit, Light Reading speaks to Lim Chee Siong, Huawei's CMO in the South Pacific Region.
LRTV Custom TV
Juniper's NFV Platform

6|22|16   |     |   (0) comments


A telco cloud is a key enabler for service providers to deliver virtualized services to their customers. Juniper has a differentiated approach with an open and comprehensive NFV platform to build the cloud of the future for multiple use cases.
Women in Comms Introduction Videos
Infinera: The Glass Ceiling's Been Broken

6|22|16   |   4:34   |   (0) comments


Shannon Williams, an engineer by trade and now the director of sales for Infinera's major accounts, draws confidence from being a female in a male-dominated industry and hopes other women will too as industry dynamics swing in our favor.
LRTV Custom TV
RAD Demonstrates SD-WAN Functionality at BCE 2016

6|22|16   |     |   (0) comments


In conjunction with Versa Networks, RAD demos a joint solution for SD-WAN implementation. The solution uses RAD's ETX-2i, a vCPE platform integrating a powerful IP and Carrier Ethernet NID/NTU with a field-pluggable x86 NFV module that runs Versa's FlexVNF for SD-WAN functionality. The demo implements SD-WAN over a simulated service provider footprint by deploying ...
LRTV Custom TV
Radware on Virtualizing Network Security

6|21|16   |     |   (0) comments


Radware's Michael O'Malley highlights the benefits for service providers of virtualizing network security.
LRTV Huawei Video Resource Center
Huawei 2016 UBBS World Tour: Singapore

6|21|16   |   02:39   |   (0) comments


Highlights from Huawei's UBBS World Tour event in Singapore.
LRTV Custom TV
The FlowBROKER Solution

6|21|16   |     |   (0) comments


During a demo at the Big Communications Event 2016, Accedian director of product line solutions Greg Spear demonstrates how the FlowBROKER distributed packet capture solution (part of Accedian's SkyLIGHT platform) can be used to troubleshoot and resolve QoE issues.

FlowBROKER is the industry's first lossless remote packet capture solution, which uses ...

LRTV Documentaries
BCE 2016: Dell & the New World Order

6|21|16   |   22:48   |   (0) comments


Dell's Jim Ganthier on how the very essence of enterprise is being affected by digital disruption – and how the cloud can help companies find a path forward.
Upcoming Live Events
September 13-14, 2016, The Curtis Hotel, Denver, CO
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 6-8, 2016,
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
A new survey conducted by Heavy Reading and TM Forum shows that CSPs around the world see the move to digital operations as a necessary part of their overall virtualization strategies.
Hot Topics
'Brexit' Vote Hits BT, Vodafone
Iain Morris, News Editor, 6/24/2016
AT&T Settles on LTE for Cellular IoT
Dan Jones, Mobile Editor, 6/22/2016
Google Fiber Buys Webpass in Wireless Play
Iain Morris, News Editor, 6/23/2016
Netflix Queues Up Video Downloads
Mari Silbey, Senior Editor, Cable/Video, 6/23/2016
AWS CEO: Enterprise Data Center Is Doomed
Mitch Wagner, West Coast Bureau Chief, Light Reading, 6/21/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
At the BCE 2016 show in Austin, ECI Telecom CEO Darryl Edwards tells Light Reading founder and CEO about the Elastic Network concept and the company's NFV and cybersecurity developments.
Mark Dzuban, president and CEO of SCTE/ISBE, sits down with Steve Saunders in Light Reading's New York office to discuss the society's Energy 2020 campaign, including its mission to benefit the environment, enable economic benefits and the key challenges facing cable operators wanting to reduce energy consumption.
Animals with Phones
Live Digital Audio

Our world has evolved through innovation from the Industrial Revolution of the 1740s to the information age, and it is now entering the Fourth Industrial Revolution, driven by technology. Technology is driving a paradigm shift in the way digital solutions deliver a connected world, changing the way we live, communicate and provide solutions. It can have a powerful impact on how we tackle some of the world’s most pressing problems. In this radio show, Caroline Dowling, President of Communications Infrastructure & Enterprise Computing at Flex, will join Women in Comms Director Sarah Thomas to discuss the impact technology has on society and how it can be a game-changer across the globe; improving lives and creating a smarter world. Dowling, a Cork, Ireland, native and graduate of Harvard Business School's Advanced Management Program, will also discuss her experience managing an international team focused on innovation in an age of high-speed change.