Aeroo wants to make a comeback as a ‘cable company’

Aereo, an American start-up that allowed internet users to watch TV via a streaming portal, wants to offer its services again by presenting itself as a cable company. The service recently had to close its doors after a ruling by the US Supreme Court.

Aereo deploys thousands of mini antennas to pick TV signals from the airwaves, one antenna per customer. A subscriber to the service could then watch online television via streaming video. Aereo argued that this was completely legal, because subscribers rent an antenna to pick up freely receivable stations. Several American TV channels did not agree with this reasoning and were afraid of missing out on revenue that cable companies pay them. It was then decided to take Aereo to court for copyright infringement.

Ultimately, the US Supreme Court ruled. The judges ruled that Aereo infringed the copyright of the TV channels. The service was then forced to close its doors, but that may be temporary: the company has indicated that the Supreme Court ruling shows that Aereo should be seen as a cable company. Aereo wants to negotiate with the TV channels to come to a compensation. For that, it again goes to a lower court in the hope of being classified as a cable operator.

Aereo’s lawyers see another bright spot in the verdict: according to them, the judges mainly object to the transmission of live broadcasts. If Aereo switches to timeshifting functionality, the company would still have a chance.

Whether the new strategy will succeed remains to be seen. If the start-up starts negotiating with the American broadcasters, there is a good chance that they will ask a sky-high fee. Nevertheless, the CEO continues to think that the company can make a new start in this way.