Online streaming company Aereo has filed for bankruptcy protection in the wake of June’s US Supreme Court ruling that it breaches the copyright of major sports leagues and their broadcast partners.
Aereo suspended its operations following June’s ruling. It has since failed in its attempts to reclassify itself as a cable-television provider in order to continue to operate. On November 12, Boston-based Aereo laid off 74 employees, leaving 14, and has now made a Chapter 11 filing.
Aereo chief executive Chet Kanojia said the Supreme Court’s decision created “regulatory and legal uncertainty” that proved insurmountable.
“A little over three years ago, the team at Aereo set out to build a better television experience for the consumer,” Kanojia said in a blog post. “We knew we had touched a nerve, had created something special, and had a built something meaningful for consumers.”
In a filing with the U.S. Bankruptcy Court in New York, chief financial officer Ramon Rivera said securing protection from creditors should provide “necessary breathing room” for Aereo to sell its assets, recapitalise or restructure.
In October, ABC, CBS, NBC Universal and Fox requested the Supreme Court hear their case against Aereo, which utilises personal television antennas to give subscribers access to free-to-air broadcast channels for a small fee. The broadcasters were supported by baseball’s MLB and American football’s NFL leagues in appealing against an April 2013 decision by the 2nd US Circuit Court of Appeals denying their request to shut down Aereo.
MLB and the NFL threatened to move all their rights to pay-television if Aereo was deemed to be legal.