cablevision
What's next for Aereo?
April 3, 2013: 9:03 AM ETAdding Internet streams of broadcast TV to the mix of options for viewers is yet another assault on cable's walled garden.
FORTUNE -- Now that Aereo has a new lease on life for its bizarre business model thanks to a court ruling Monday, the question arises: What is the company's end game?
Aereo streams broadcast television programs -- including news and sports -- over the Internet. The company argues that by creating a discrete video file for each user, copyright restrictions on "public performances" don't apply. A federal appeals court agreed, allowing the company to continue operating -- and to commence a major expansion beyond the northeast corridor -- as the underlying case winds its way through the legal system. The company leases tiny antennas, each of which is designated for a particular stream, and thus a particular household. That, the company argues, comports with a 2008 ruling allowing Cablevision to offer "remote DVR" services. Major broadcasters disagree and filed a lawsuit against Aereo last year. They argue that Aereo's business is based on technological trickery designed to circumvent copyrights -- which of course it is, but that doesn't necessarily mean copyrights are being infringed. Does it matter whether someone has an antenna on their roof, as opposed to leasing one that's housed in Aereo's facilities?
The case could have implications that go beyond Aereo to affect all "cloud media" services, like Google Music (GOOG) and Amazon Cloud Player (AMZN). But what does it mean for Aereo itself? And for the TV business as a whole? The Wall Street Journal reported last week that the company has been in talks over possible "partnerships" with AT&T (T) and Dish Network (DISH). According to the Journal, the company's uncertain legal situation is a major sticking point with potential "partners" or acquirers, any of which could help the company expand into markets across the country at relatively little cost.
Monday's ruling was a major step toward solidifying Aereo's business, but it's far from the final one. The case could drag on for years. On the other hand, an acquisition or partnership -- somewhat likelier in the wake of the court ruling -- could encourage broadcasters to seek some sort of settlement. Meanwhile, Aereo will keep growing with or without a major telecom or pay-TV partner.
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With backing from the Barry-Diller-owned IAC/InterActiveCorp (IACI) and Highland Capital, the company plans to expand to 22 markets this year, and possibly up to 100 by next year. IAC and Highland recently closed on a Series B round worth $38 million, on top of a startup investment last year led by IAC, putting the company's total financing at more than $60 million. Diller sits on Aereo's board and has been vocal in his support of the company's efforts.
Aereo currently operates in the New York area and recently expanded into a few other markets in the northeast. Immediate plans call for expansion into Chicago and Atlanta, where it will be able to pick up "superstations" like WGN in Chicago and WTBS in Atlanta -- both of which are cable mainstays that still broadcast over the air in their home markets. That represents a direct assault on the cable industry as well as on broadcasters, which collect retransmission fees from pay-TV operators.
So-called "cord-cutting" has been slicing into cable-TV's business for a few years now, though it's not happening yet in wholesale fashion. Viewers are increasingly irritated by being forced to buy dozens or hundreds of channels at a time, most of which they don't watch. Rising subscription rates only add to the annoyance. And the trend is already spurred on by the growth of Internet-based video services like Netflix (NFLX) and Amazon. Adding broadcast TV streams to that mix of non-cable options only gives people that much more reason to cut the cord.
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The future of TV (maybe)
Outfits like NimbleTV and Aereo want to finally fulfill the promise of web TV. But disrupting the massive home-entertainment industry won't be easy.
FORTUNE -- Since the advent of the Internet, web TV has perpetually lingered over the horizon. Years after major cable companies unveiled "TV everywhere" initiatives and giants Apple (AAPL), Google (GOOG), and Microsoft (MSFT) began peddling hardware to beam the Internet to televisions, the merging of the Net MORE
Jessi Hempel, writer - Jun 8, 2012 5:00 AM ETPosted in: Aereo, Apple TV, cablevision, Comcast, Comcast. Xfinity TV, Google TV, Microsoft, NimbleTV, Sling Media, time warner cable, Web TV -
Today in Tech
Every day, the Fortune staff spends hours poring over tech stories, posts, and reviews from all over the Web to keep tabs on the companies that matter. We've assembled the day's most newsworthy bits below.
"Almost every single app I have is better on the iPhone." -- Steve Wozniak (engadget via ITProPortal)
MySpace and Facebook announced "Mashup with Facebook," a product that lets MySpace users with Facebook accounts port their FB interests and MORE JP Mangalindan, Writer - Nov 19, 2010 8:08 AM ETPosted in: Angry Birds, cablevision, Dell, Facebook, Financial, Google Street View, iPad, iPhone, Mobile, MySpace, Rovio Mobile, Sun Life, Tablet, TD Bank Financial Group, virtual property -
Today in Tech
Every day, the Fortune staff spends hours poring over tech stories, posts, and reviews from all over the Web to keep tabs on the companies that matter. We've assembled the weekend's most newsworthy bits below.
Less than a month after Motorola filed a suit against Apple, Apple is returning the favor by suing Motorola for infringing on smart phone patents. (The Register)
JP Mangalindan, Writer - Nov 1, 2010 6:00 AM ET
Facebook reports a data broker paid app makers for user MOREPosted in: Apple, cablevision, Dan Hesse, ESPN, Evan Williams, Facebook, FCC, Motorola, Netflix, News Corp., Sprint, Supreme Court, Twitter, Verizon, Windows Phone 7, Xbox -
Today in Tech: News Around the Web
Every day, the Fortune staff spends hours poring over tech stories, posts, and reviews from all over the Web to keep tabs on the companies that matter. We've assembled the day's most newsworthy bits below.
"For those of us who live outside of Apple's distortion field, we know that 7-inch tablets will actually be a big portion of the market, and we know that Adobe Flash support actually matters to MORE
JP Mangalindan, Writer - Oct 20, 2010 7:08 AM ETPosted in: cablevision, Carol Bartz, Facebook, GPS, Intel, Jim Balsillie, Mark Zuckerberg, News Corp., RIM, Steve Jobs, Tom Tom, Verizon, Yahoo -
The best rhetoric in business: cable vs content
When the cable providers and the companies providing the shows fight over fees -- as Cablevision and News Corp currently are -- the viewers lose. But those who enjoy their business bare knuckled definitely win.
As the "Cablevision vs. News Corp." feud escalates, more than three million subscribers remain without Fox programming. Cablevision blames News Corp. for demanding an extortionate increase in retransmission fees; News Corp. argues Cablevision isn't negotiating MORE
JP Mangalindan, Writer - Oct 18, 2010 1:26 PM ET -
Today in Tech: News around the Web
Every day, the Fortune staff spends hours poring over tech stories, posts, and reviews from all over the Web to keep tabs on the companies that matter. We've assembled the weekend's most newsworthy bits below.
In yet another situation of cable negotiations gone awry, News Corp. yanked Fox programming from Cablevision. "This is an unfortunate attempt to extort unreasonable and unfair fee increases from Cablevision and our customers," stated a Cablevision email MORE
JP Mangalindan, Writer - Oct 18, 2010 6:30 AM ETPosted in: Android, Angry Birds, Apple, cablevision, Facebook, FaceTime, Fox, Google, Mark Zuckerberg, News Corp., Samsung, Steve Jobs, Yahoo -
Rated ugly: Will TV Everywhere free us from bad cable box menus?
As cable companies take on Netflix and Hulu with TV Everywhere, they'd do well to remember that where video content is concerned, a polished interface is part of the package, and the main area where they've been beat.
At a time when more than 21 million people now regularly stream film or television content from services like Netflix Instant and Hulu, cable companies still think they have the consumer by the eyeballs, MORE
JP Mangalindan, Writer - Oct 14, 2010 3:29 PM ETPosted in: cable, cablevision, Comcast, Google, Hulu, Jeff Bewkes, Netflix, on-demand, television, Television program, Time Warner, time warner cable, Video on demand, Whitney Hess -
Clash of the titans: the cable wars, continued
News Corp. vs Cablevision. Cablevision vs. Disney. The list goes on and on. An updated tally of cable licensing deals gone horribly awry.
As the Cablevision and News Corp. feud continues, more than three million subscribers remain without Fox programming. Cablevision blames News Corp. for demanding an extortionate increase in retransmission fees; News Corp. argues Cablevision isn't negotiating in good faith. Regardless of which party is at fault, the cable MORE
JP Mangalindan, Writer - Jun 3, 2010 11:41 AM ETPosted in: ABC, cablevision, Comedy Central, Disney, ESPNN, Food Network, Fox, HGTV, Nickelodeon, Scripps Network, time warner cable, viacom -
3D plays a practice round at Masters
The Masters golf tournament in Augusta, GA, is one of the hottest tickets in sports. Unless you know someone on the inside, plan on paying thousands for entry onto the hallowed grounds.
Or, you could spend that money on a 3D-ready television and let Augusta National's famous azaleas and manicured fairways come to you. Starting today, 3D coverage of the tournament will be broadcast live on Comcast (CMCSA), which is also MORE
Jessica Shambora, Writer-Reporter - Apr 8, 2010 10:15 AM ETPosted in: 3D, 3D television, 3D TV, cablevision, Comcast, Disney, ESPN, IBM, James Cameron, masters, time warner cable
