The US Supreme Court Just Ruled Against the Future of Cheap Television Matt Connolly - Policy.Mic
go to original June 27, 2014

The news: If you’re waiting for cheap Internet TV, you’re going to have to wait a bit longer.

The Supreme Court ruled against Aereo, a start-up from New York that offered access to streamed and recorded television channels for $8 a month. Aereo works through thousands of small antennas that pick up broadcast television, each "rented" to an individual user who decides what he or she wants to watch.

The decision: Aereo argued that the customer is the one making the transactions, saying, "From the beginning to the end of this process, the data stream received by an antenna is available only to the user who tuned the antenna by selecting a program to watch." Cable companies, though, accused Aereo of taking their shows and re-transmitting them for a cheaper price.

In a 6-3 decision, the Supreme Court concluded that Aereo’s model is illegal. The company does not simply provide consumers with technology, the court decided, but also unfair access to copyrighted material. Aereo argued that it resembles a copy shop — someone can make illegal copies, but the shop itself just provides the technology and shouldn’t be held liable. The court rejected that line of thinking, characterizing the business as transmitting "performances" to the public.

What it means: It's a big deal for some subscribers, but an even bigger deal for Aereo, which is kissing $97 million in investment goodbye. The bigger question is how the ruling will shape the landscape of television, currently dominated by major broadcasters.

Read the rest at Policy.Mic

Photo: Associated Press

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