Tags: Broadcasting, Satellite TV
Publication: News-Journal.com
Publication Date: 01/09/2013

Aereo’s mini antennas receive over-the-air broadcasts and transmit them over the internet. Image credit: Aero

Aereo, the year-old inexpensive live television online service has announced it is planning to expand beyond New York City this spring, threatening satellite and cable TV providers.

Following a federal court ruling that tentatively validated the service’s legality, Aereo expects to offer its services now to New York City suburbs, Washington, Chicago, Boston, Philadelphia, and a reported 18 other markets within the United States territory. Since its conception, the service has been permitted only for New York City residents.

Last July, a federal judge in New York ruled that the service’s unlicensed use of free, over-the-air broadcasts, does not violate copyright law; a key win for Aereo’s expansion plans. However, broadcasters appealed the ruling and reports indicate that, during a November hearing, appellate judges expressed skepticism about the legality of the service. The outcome will determine if Aereo will be able to continue and expand its service to other cities or if will be completely invalidated.

If the ruling stands, the service could cause an important shift in the broadcast industry by offering viewers a less expensive way to consume television content, which could cause a drop on satellite and cable services subscribers. Additionally, it could also reduce licensing fees broadcasters collect from these companies.

Another point of concern for the broadcast industry is that it is not yet clear how audience measures would be incorporated, which could interfere with the way broadcasters sell ads.

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