Aereo is dead, so what's next for television?

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The broadcast industry can breathe again: Aereo -- the startup that streamed broadcast TV over the Internet for cheap -- is dead. Or at least, the incarnation of Aereo that wasn’t paying copyright fees is dead, thanks to a Supreme Court ruling. So what happens now?

A decision in favor of Aereo would have changed things quite a bit for the television industry, but the ruling means back to business as usual. While some have raised fears that the opinion will impact cloud computing services, the court intended for the ruling to apply narrowly to Aereo. "It just means you can expect more of the same," says Michael Greeson, president of The Diffusion Group, a research firm focused on the future of TV. "The broadcasters won the case. There were no caveats, except for that this is a limited case. It would be untenable to extend this decision beyond its limited scope."

Reacting to the news, Aereo CEO Chet Kanojia said that "our work is not done," and that it will "continue to fight for our consumers." Realistically, though, the company is unlikely to survive. "Aereo will go out of business immediately," Greeson says. The fees Aereo is now required to pay broadcasters, which can range from a few cents to a few dollars for every channel, for every subscriber, every month, will make it impossible to continue charging only $8 to $12 a month.

For consumers, the ruling means no change in the high prices from cable companies and limited options for watching TV online or on mobile devices. Cable companies have started to offer streaming online options and mobile apps like Time Warner’s TWC TV app and Comcast’s Xfinity streaming service, but those offerings are expensive, slow to roll out, and tend to be poorly designed.


Aereo is dead, so what's next for television?