Fed Court Ruling Favors Aereo Video Service

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.

Backed by Barry Diller's IAC InterActive, Aereo enables subscribers to stream live broadcast content from local stations -- including the networks, public television and Spanish-language channels -- on their desktop computers, tablets or smartphones.

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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