The future of Aereo is in serious doubt after the US Supreme Court backed claims from major leagues and their broadcast partners that the online streaming service breaches copyright rules.
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 that denied their request to shut down Aereo.
The two leagues threatened to move all their rights to pay-television if Aereo was deemed to be legal.
The court rejected an earlier appeals court decision which had ruled the fledgling service did not breach broadcasters’ copyright, with judges voting 6-3 against the earlier ruling. “Aereo's system is, for all practical purposes, identical to a cable system,” Justice Stephen Breyer wrote for the majority. “Both use their own equipment. Both receive broadcast television programmes, many of which are copyrighted. Both enable subscribers to watch those programs virtually as they are being broadcast.”
Aereo chief executive and founder Chet Kanojia described the decision as “a massive setback for the American consumer.” He added: “This sends a chilling message to the technology industry. It is troubling that the court states in its decision that, ‘to the extent commercial actors or other interested entities may be concerned with the relationship between the development and use of such technologies and the Copyright Act, they are of course free to seek action from Congress.’ That begs the question: Are we moving towards a permission-based system for technology innovation?”
Kanojia added: “We are disappointed in the outcome, but our work is not done. We will continue to fight for our consumers and fight to create innovative technologies that have a meaningful and positive impact on our world.”