This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Will Aereo Lower Your Cable Bill?


NEW YORK ( TheStreet)--Small tech startup, partly owned by IAC/InterActiveCorp (IACI), recently won an important skirmish on par with David vs. Goliath against several well-known large broadcasters and content providers.

Aereo provides a web service that uses antennas to receive broadcast TV signals and makes the programming available to Aereo subscribers on the internet. Aereo currently limits its offering to New York City. Users are able to watch high-definition TV from a portable device live or record programming for later viewing.

CBS (CBS), Comcast (CMCSA), Walt Disney/ (DIS), News Corp. (NWSA) and other broadcasters are suing Aereo for what they contend is Aereo's public broadcasting of their content without permission and without paying royalty fees.

( TheStreet's Gary Krakow writes more about Barry Diller and Aereo Aereo Wins First Round In Court .)

The broadcasters are up in arms over Aereo because beyond the advertising revenue they receive, they also charge cable and satellite companies including Verizon Communications (VZ),   AT&T (T), Directv Group (DTV), DISH Network (DISH), Cablevision Systems (CVC), and others who want to carry the broadcasters programming.

NWSA Chart NWSA data by YCharts

Aereo fired back at the broadcasters and stated the technology it employs is perfectly legal and cited several previous court cases including at least one from the U.S. Supreme Court. The Federal Communications Commission requires broadcasters to offer their programming over the airways free of charge in return for broadcasters' use of the radio spectrum.

Aereo claims that because every Aereo customer is provided their own antenna at Aereo's location to pick up the signal, Aereo's service does not fall within the meaning of a public broadcast. Furthermore, Aereo claims its recording service is no different from that of a household VCR or the Cablevision ruling on digital recordings.

In the Cablevision case, a federal court ruled "each RS-DVR playback transmission is made to a single subscriber using a single unique copy produced by that subscriber ...such transmissions are not performances 'to the public.' "

Even in a cloud storage situation, each subscriber needs to have their own copy of the same programming.

In hopes of a quick Aereo death, the aforementioned broadcasters filed a request for a temporary injunction against Aereo to stop its service. On Wednesday U.S. District Judge Alison Nathan for the Southern District of New York ruled in favor of Aereo and denied the motion, thereby allowing Aereo to continue while the case makes its way through the court system.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs