Seeking Alpha

Broadcasters might pull the nuclear option if Aereo wins in Supreme Court

  • Aereo plans to launch its service in Cincinnati next week as it continues on its expansion path despite the legal objections from major broadcasters.
  • The formula will be same for the consumers in the three states that are within Cincinnati's broadcasting range: $8 a month for 30 OTA channels.
  • Legal handicappers have given an edge to Aero in its Supreme Court battle, but ABC (DIS), Fox (FOXA), CBS (CBS), and NBC (CMCSA) might have an ace up their sleeve.
  • The nuclear option: If the major broadcasters move away from the OTA broadcasting world to re-emerge on cable they would remove themselves from the tight content control of the FCC. Edgy shows in the spirit of The Sopranos, Breaking Bad, or True Blood could be part of the programming mix to boost ratings and advertising revenue.
Comments (5)
  • kmi
    , contributor
    Comments (4041) | Send Message
    Continuing fragmentation in the TV space (netflix, amazon prime, hulu plus, aereo) is going to eventually break the business model.
    17 Jan, 11:06 AM Reply Like
  • bcv166
    , contributor
    Comments (18) | Send Message
    Aero will have to start paying broadcasters to resell their content.
    17 Jan, 11:11 AM Reply Like
  • ajacques
    , contributor
    Comments (6) | Send Message
    aero is only broadcasting basic cable the stuff that disney is broadcasting over the public air waves. The air waves that they get for free from the government in exchange for doing local news.


    It already paid for by the tax dollars.


    basic cable should be a lot cheaper, extended channels should be more expensive, and fund better quality programming. If basic cable can't be fully funded with advertising, then abc needs to give up their free air waves to someone who can.
    17 Jan, 01:31 PM Reply Like
  • redarrow5150
    , contributor
    Comments (1012) | Send Message
    I think you're missing the bigger picture. Whose paying the content to run on network programs for shows like Modern Family, Big Bang Theory or American Idol? Was it the government that paid for broadcasters investing hundreds of millions of dollars for digital? Contrary to what you wrote broadcast companies are making huge investments across the board in bringing content into your home. It's a joke that AERO steals a signals and charges for use over the internet. I got to give it to Diller he really used a China business model in starting this service.
    17 Jan, 05:52 PM Reply Like
  • redarrow5150
    , contributor
    Comments (1012) | Send Message
    If the broadcasters lose this case the value of cable companies (INTERNET) pipelines will go up dramatically. The broadcasters will slowly ease toward buying the network service via the internet. This potentially ruling will have devastating consequences on the local broadcasters like Gray, Media General etc if the networks go the internet/cable route.
    17 Jan, 11:25 AM Reply Like
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