In a blow to major TV broadcasters, a federal appeals court ruled Monday that start-up Aereo can continue to stream live local TV through its website and app.
According to USAToday, the decision from the U.S. Court of
Appeals for the Second Circuit in New York ,
affirms an earlier ruling that Aereo doesn't violate broadcasters' copyrights
in airing programs over the Internet from its farm of mini-antennas in Brooklyn .
Consumer groups applauded the decision because it ushers in
greater flexibility in choosing TV shows without paying a hefty cable bill.
However, it also signals that more legal fights will likely be waged by
broadcasters eager to hold on to advertising revenues and retransmission fees
that cable companies pay to carry their channels.
Each subscriber leases a small Aereo antenna that's stored
in the company's warehouse, a point that Aereo emphasizes in differentiating
its service from other streaming companies. The antenna receives the TV signal,
and subscribers can view or record content through Aereo's streaming
technology, which requires an Internet connection. Subscription fees range from
$1 a day to $80 a year.
Streaming is available only in areas where Aereo operates.
The lawsuit's plaintiffs -- including ABC, CBS,
NBCUniversal, Telemundo and Public Broadcasting Service -- sued Aereo last year
in federal court, asking for an injunction barring the company from
transmitting programs because it lacks the proper license.
The National Association of Broadcasters, an industry group
representing TV networks, said it was "disappointed" by the decision,
and sided with the dissenting opinion issued by Judge Denny Chin.
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