The NFL And MLB Threaten A Move To Cable Thanks To Video Streaming Startup Aereo
According to Variety, both leagues filed a joint suit over the weekend urging the Supreme Court to look over a separate suit that major TV broadcasters have filed earlier this month.
Essentially, the organizations argue that Aereo's antennas which provide streams of local channels directly to tablets and smartphones is illegal. This prevents the networks and these leagues from obtaining retransmission fees ultimately violating copyright laws.
For those of you unfamiliar with how Aereo works: it's a service that lets you stream live network TV from stations like NBC, ABC, CBS, and Fox to your smartphone, tablet, or computer. You also have the option to record shows in a virtual DVR and beam the video back to your device over the Internet later.
Aereo has a separate antenna for each user, which the company claims makes the service legal and allows it to retransmit the TV signal over the Internet. Aereo costs $8 per month to use.
The leagues get about $100 million of the $300 million broadcasters get when they structure deals for each season. Since cable channels require carrier fees to be paid and operate on a subscription basis, a jump to cable would ensure the MLB and NFL continue their lucrative deals.
Aereo argues its service isn't against the law, but broadcasters obviously disagree. The company considers its transmissions to be legal and private but they need to file a reply brief before December 12.