Aereo's Promise Of 'Live TV, No Cable Required' Invites Legal Action From Broadcasters
Aereo, a new startup backed by Barry Diller’s IAC and other investors, plans to launch a service providing New York City over-the-air broadcast stations -- and DVR service -- to mobile devices for $12 a month.
You can expect possible legal action from broadcasters, reports Todd Spangler, the main issue being the retransmission fees that cable operators pay to send the same stations out to subscribers, Aereo isn’t planning to pay the broadcasters anything. Spangler explains the technical rationale for that.
But we’ll let Diller to get in the last words: Since broadcast TV has been given government-granted licenses to the airwaves for free, he told a press conference, the public is entitled to "receive it for free."