Pay-TV's bundling gets reprieve in high court's Aereo ruling

In its ruling against the TV streaming company Aereo, the Supreme Court has removed one of the most visible threats to the pay-TV industry's notoriously expensive bundle.

There is also a generation of viewers, particularly young people, who increasingly forgo cable and satellite in favor of online outlets including Netflix and Hulu. Analysts contend the media industry will lose this key TV-watching demographic without adopting less restrictive, and more affordable options.

"If Aereo had been upheld, you could've told your cable company to jump in a lake," said Jeffrey Cole, director of the Center for the Digital Future at USC's Annenberg School for Communication and Journalism. "With Aereo, and also things like Netflix and Hulu, that would have been the start to a pretty good package."

Broadcasters worry that services like Aereo encourage so-called cord-cutting and undercut the rising fees they charge distributors including Time Warner Cable and DirecTV to carry their programming. Those fees account for billions of dollars in revenue a year.


Pay-TV's bundling gets reprieve in high court's Aereo ruling