Thursday, June 26, 2014

Aereo's Copyright Problem Explained In 90-Seconds


The Supreme Court ruled in a 6-3 decision yesterday that Internet TV service Aereo, which transmits broadcast TV channels over the Internet to subscribers, is just like a cable TV service, and therefore must pay licensing fees to broadcasters to show their programs. Aereo had argued it only rented a small, dedicated broadcast antenna to each of its customers, who have a right to watch the programs, and shouldn't have to pay licensing fees. Broadcasters had filed suit against Aereo, whose estimated hundreds of thousands of subscribers are now set to lose the service.

The Supreme Court has ruled that Aereo is violating broadcaster copyrights, but why? And how does the service work? 

Bloomberg's Sam Grobert explains what Aereo does.



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