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Broadcasters Petition US Supreme Court In Fight Against Aereo

First time accepted submitter wasteoid writes "Aereo provides live-streaming and cloud-based DVR capability for Over-The-Air (OTA) broadcasts to their paying customers. Broadcasters object to this functionality, with Fox claiming about Aereo, 'Make no mistake, Aereo is stealing our broadcast signal.' The focus appears to be the ability of Aereo to provide streaming and DVR capabilities that traditional broadcasters have not delivered. The litigious broadcasters are fighting against "Aereo's illegal disruption of their business model.""

37 of 229 comments (clear)

  1. NTT in Japan by musikit · · Score: 5, Funny

    Living in Japan once in a while someone from NTT knocks on my door asking that i give them money for receiving the signal they broadcast.
    my teachers told me about this scam however i tell them two true things

    1. i dont have a TV. so im not paying for something i'm not receiving
    2. if you don't want me to get the signal then don't broadcast it to me.

    same should apply here. the TV stations broadcasted their signal in "cleartext"

    1. Re:NTT in Japan by aurizon · · Score: 2

      As I understand it, Aereo erects grids of small antennas in a strong signal area, each antenna belongs to one subscriber who is the onkly one who watches that feed. Americans have, for well over 100 years erected antennas on high points so people in the radi0/TV shadow, or out of range by distance can hear/see the radio and TV transmissions. Many of these were group efforts for towns to get reception over mountains etc.
      The courts have seen this and ruled on it, so now they are asked to make illegal a practice with well over 100 years of legal use?
      I think not

    2. Re:NTT in Japan by Skapare · · Score: 2

      They are leasing you an antenna. They are connecting YOU to YOUR antenna, and doing so in a way that prevents thieves on the internet from stealing the contents so that you and only you get that signal.

      --
      now we need to go OSS in diesel cars
    3. Re:NTT in Japan by roc97007 · · Score: 5, Informative

      Living in Japan once in a while someone from NTT knocks on my door asking that i give them money for receiving the signal they broadcast.
      my teachers told me about this scam however i tell them two true things

      1. i dont have a TV. so im not paying for something i'm not receiving
      2. if you don't want me to get the signal then don't broadcast it to me.

      same should apply here. the TV stations broadcasted their signal in "cleartext"

      America is an exception when it comes to public broadcast fees. You don't pay for public broadcasting, yet you pay and a lot for cable. Most civilised countries (almost all or all countries in Europe) have a tv license fee, that's used to finance the public broadcasting system. And I think the same applies in Japan.

      Let's make sure we agree on the terminology. "public broadcast" to me means the PBS broadcasts (usually one TV channel and one radio channel per area) that are funded by voluntary donations and our tax money (which isn't voluntary). Commercial broadcast TV is funded by selling commercial air time to advertisers. The price for watching broadcast content is to have to put up with the commercials, which presumably affects what you buy, which is valuable to the advertisers.

      Let me repeat this, so it's clear: In the US, commercial TV broadcast is funded by advertising time. (And, in part, by selling rebroadcasting rights to cable channels.) That's why it's been classically "free" off-air to viewers. It's a different model from other countries, where you get taxed for owning a TV. The only exception is the US government sponsored PBS channel, which is still "free" to receive but is funded in part by income tax.

      It's not clear from TFA whether Aero is cutting out the commercials. If not, they're not affecting that part of the business model. Granted, you may be able to FF over the commercials, but we've been able to do that for decades using various time shifting techniques. (Which the broadcast stations also fought, and lost.)

      The "threat" I see, besides TFA's mention of cable companies adopting the same technique and avoiding retransmission fees, is that providing the content on-demand causes the network to lose control of the timeslots and order in which the content is viewed, which, if you read the articles on show popularity amongst various demographics, is very important to the networks. They'll put a poorly performing show sandwiched between two winners to try to pump up the numbers, or put a clear winner in a less popular time slot, or against a winner on a different channel, to try to increase the numbers in that particular slot. I think that's the part of the business model that on-demand destroys.

      Actual legal issues aside, it's convenient on-demand that's the real enemy. The networks have already lost the battle for older content (hulu, netflix, et al) but are determined to hang onto their business model for first-run content.

      The problem, of course, is that their prime demographic doesn't watch TV that way. The 18-45 crowd expects to watch content on the device of their choosing at the time of their choosing, and that is directly contrary to the network business model. And the networks don't know how to evolve. The primary consumers of the broadcast TV business model, the "tv tray generation" (mostly baby boomers) are dying out. And the networks don't know what to do about that.

      The world is changing. The way content is consumed is changing. The way content is *produced* is also changing, which is a different story out of scope of this article. The classic content producers and content distributors are struggling with what to do about this. I submit that this is a good thing.

      --
      Oliver's law of assumed responsibility: If you're seen fixing it, you will be blamed for breaking it.
    4. Re:NTT in Japan by meerling · · Score: 2

      Since they are legally selling devices to let you send your media to any tv or other appropriate device on a small scale (your household), it seems to definitely be fair use and basically the same thing, just on a larger scale. For that matter, their other functions seem to be the same as a DVR. Seems to me they are getting the broadcasters rather limited 'broadcast' to a lot more people in a more convenient method, and they as well as their customers are shouldering the costs for it instead of the "broadcasters".
      Who knows what the courts will eventually decide.

    5. Re:NTT in Japan by Mr.+Slippery · · Score: 2

      In any case, Fox is a private broadcaster who makes their money off advertising sales. They're not a public broadcaster.

      ...except, of course, for their reliance on the public infrastructure of government to keep others from making unauthorized use of their signal or the information contained therein (i.e., the rebroadcast and copyright issues at stake here), and to keep others from sending out photons in the radio band in the frequencies they "own" (FCC regulations). Fox is quite reliant on your tax dollars, even if it's in a somewhat indirect manner.

      --
      Tom Swiss | the infamous tms | my blog
      You cannot wash away blood with blood
    6. Re:NTT in Japan by Jane+Q.+Public · · Score: 4, Informative

      "Cable became dominant in the US after people got tired of trying to get a good signal, either in rural areas where the transmitters were distant, or in cities, where buildings caused multipath ghosting and other bad reception. Then people just got too damn lazy (or lived in areas with HOAs that forbade them) to put up antennas. "

      You left a really HUGE part out. The part where you paid for cable in order to eliminate the commercials that were the funding source for broadcast. But (as I predicted many years ago), the advertising sneaked back in anyway, and now you're getting dinged at both ends: you still see the commercials AND you're paying $50 or more a month.

      Everybody lost but the cable companies. And make no mistake: this did not come about by accident.

    7. Re:NTT in Japan by shentino · · Score: 2

      Never underestimate a special interest with an axe to grind that has politicians in his pocket.

    8. Re:NTT in Japan by Jane+Q.+Public · · Score: 2

      "HA!"

      Well, it's true. Maybe you don't remember those days, but a big selling point of cable was that it didn't have commercials. You were paying $ in exchange for getting rid of them.

      I predicted that wouldn't last, and I was correct.

    9. Re:NTT in Japan by RatherBeAnonymous · · Score: 2

      They aren't really geo-shifting. They only take customers in limited areas and only record programming for that that person could theoretically pick up with an antenna at their place of residence.

    10. Re:NTT in Japan by Jane+Q.+Public · · Score: 2

      Not in the U.S. In the beginning, you couldn't even get broadcast channels. Congress actually had to pass a law making cable companies carry them.

  2. Rights? by AK+Marc · · Score: 5, Insightful

    So we have no rights to the content beamed into our homes, but they have the Right to Profit, even with a bad business model.

    1. Re:Rights? by Milosch1 · · Score: 2, Interesting

      Aereo has no right to profit from the significant money spent and effort made to deliver the broadcast signals in the first place. Not without compensation.

    2. Re:Rights? by NoNonAlphaCharsHere · · Score: 4, Insightful

      That argument would apply to television sets themselves. Doesn't hold water.

    3. Re:Rights? by fuzzyfuzzyfungus · · Score: 5, Informative

      Aereo has no right to profit from the significant money spent and effort made to deliver the broadcast signals in the first place. Not without compensation.

      The courts have so far, begged to differ. In the now-famous CableVision case, the court concluded that Cablevision's offer of a 'cloud DVR' product was legitimate: although Cablevision's hardware was making what would (otherwise) be illicit copies, it was operating as a direct extension of the customer's record and playback requests. Just a DVR; but with the hardware offsite rather than in a set top box.

      Aereo specifically designed their service to follow the same model: Aereo operates banks of antennas at their facilities, each customers is allocated(possibly dynamically; but always 1-to-1 at any given time) their own antenna and their own DVR/buffer storage, effectively creating an OTA set top box, just with the video being transported over an IP link, rather than a meter of HDMI cable, and user inputs also going over the internet rather than over IR.

      So far, the courts' response has been favorable (if sometimes bemused), in the various markets that Aereo has expanded into. They've been sued in every venue, and prevailed.

    4. Re:Rights? by __aaltlg1547 · · Score: 2

      Are there free television sets broadcast to peoples' homes that I'm missing out on?

    5. Re:Rights? by aurizon · · Score: 2

      No, it is you that do not get it. This much like the so called 'gray market' laws where companies make stuff in China and sell in the USA for $10 each and in India for $1 each - same stuff. An Indian imports to the USA with his $1 buy and sells below the 'official' product.

      They want to say that the product we gave away for free over here can not be seen by someone who comes here - via Aireo antennas - I think not.

      BTW, who pays your salary?

    6. Re:Rights? by bmo · · Score: 4, Informative

      No, but there are TV repeaters like the VCR Rabbit from the 1980s that are entirely legal, and do exactly what Areo do - rebroadcast taped or OTA (via the VCR's tuner) to another device.

      Why was it called the Rabbit? Because it multiplies the video signal.

      http://articles.latimes.com/1986-06-22/business/fi-20799_1_rabbit-system

      This is merely a VCR plus VCR Rabbit in a cabinet in a data-center paid for via subscription for the service. You could roll out your own rebroadcasting DVR and stick it in a closet or under your TV as part of your media system and pipe the signal back out to the Internet available to only your devices like this does.

      --
      BMO

    7. Re:Rights? by bmo · · Score: 3, Informative

      it is an evolving set of interpretations based on the four basic tests found in what is called the "lemon test." look it up.

      Yes, let's look it up.

      Lemon test[edit]

      The Court's decision in this case established the "Lemon test", which details the requirements for legislation concerning religion. It consists of three prongs:

      The government's action must have a secular legislative purpose; (Purpose Prong)
      The government's action must not have the primary effect of either advancing or inhibiting religion; (Effect Prong)
      The government's action must not result in an "excessive government entanglement" with religion. (Entanglement Prong)

      http://en.wikipedia.org/wiki/Lemon_v._Kurtzman

      Oh hey, it's entirely unrelated, asshole.

      --
      BMO

    8. Re:Rights? by AK+Marc · · Score: 2, Insightful

      The broadcaster is in the very least entitled to share in this profit.

      So why haven't they sued LG? I'm watching TV on an LG right now, and there isn't a profit-sharing model between LG and NBC, is there? LG profited off the broadcast signal, with no compensation to the broadcasters.

      I understand what you are saying, but I I don't think it applies. They aren't making money off the broadcasters any differently than TV makers are, and TV makers don't share profits.

      You can argue all you like that the business model established by the broadcast industry is antiquated and that they should just go away.

      I can't tell if you are being deliberately obtuse, or if you just don't get it. Nobody is saying that the industry should go away because they are antiquated. We are saying that their lawsuits should go away because their understanding of tech is antiquated. The law has well established that people can profit from storing and re-broadcasting TV (various lawsuits around VHS and TiVO have come out with the tech and devices being legal). If I were to hire someone to come to my house and program my VCR/PVR for me, that service is legal, despite the fact it is technically no longer "me" that's recording and playing back the signal. So, why is it suddenly illegal if I hire someone to hold all that VCR/PVR at their site?

      By your logic, if I were to rent a storage shed and put my recorder there, and swap tapes/discs/media once a month and watch last month's back in my house, I'm breaking the law.

      The way I see it, every single "step" of the process is explicitly legal, but the broadcasters are claiming that the sum of the parts are illegal. What's the point of even writing and voting laws if people sue because they don't "feel" it's right, though it complies with all laws and previous court decisions?

  3. 'Business Model' is not a protected class by RandomFactor · · Score: 5, Insightful

    What the station owners fear more than Aereo is the possibility that cable and satellite providers, emboldened by Aereo, will set up their own antenna arrays to avoid paying retransmission fees.

    This is exactly WHY this should be allowed. If it is cheaper to setup your own antennas than pay someone else to do it then consumers are being overcharged for the service. Competition should be protected, not the opposite of it.

    --
    --- Mercutio was right.
  4. There is more to it... by jonwil · · Score: 4, Interesting

    The real reason the broadcasters are doing this is because right now if you dont have an antenna (and many people dont, people in apartments and other shared dwellings, people with no light of sign to the transmission tower etc) the only way to get the OTA channels is to buy pay TV. And the pay TV operators pay a fair chunk of money to the OTA networks for rebroadcast rights.

    So what Aereo is doing is allowing a lot more people to get the OTA channels without going through the cable companies (which means the cable companies wont be willing to pay as much for the rebroadcast rights to the OTA networks)

  5. If Aereo is so horrible (Napster, Bittorrent)... by dryriver · · Score: 3, Insightful

    ... then why don't the big broadcaster get together and buy Aereo before it can - supposedly! - "do more damage". --- This whole thing reeks of the stink TPTB raised each time an Internet file-sharing tech came along. Instead of investing/going along with the "new wave in media consumption", TPTB always demonize whatever the latest content-delivery mechanism does. ---- So My Dear Big-Broadcasters: Put your money where your mouth is, and buy Aereo "for the good of the industry". --- I sometimes wish that the Big Media PTB would hire a CEO/CTO who is in his 20s - 30s only. I bet that CEO/CTO would go along with new trends in media distribution and consumption, instead of trying to shut them/shoot them down before they even get a chance to mature. My 2 Cents... As always, feel free to disagree. =)

    --
    Why did the chicken cross the road? Because Elon Musk put an AI chip in its head.
  6. This is nothing more... by unitron · · Score: 4, Insightful

    ...than a case of how far away from your TV your DVR is allowed to be located.

    Which is to say the broadcasters are trying to use smoke and mirrors to cover up rent seeking.

    --

    I see even classic Slashdot is now pretty much unusable on dial up anymore.

    1. Re:This is nothing more... by Anonymous Coward · · Score: 2, Insightful

      So people living in rented accomodation (where they don't own the antenna) or who pay a monthly fee to rent their TV and set-top-box combo aren't allowed to legally watch TV either? Good to know.

  7. So thats how long it takes... by Anonymous Coward · · Score: 4, Insightful

    I remember before there was FOX network.

    When they came along the big 3 had such a hissyfit at them for daring to do something different.

    And now here we are.. Fox is having the fit for someone else daring to do something different.

    Didn't take very long at all. 27 years to turn you into a stick up the ass 'we demand profits forever for doing the same thing' greedmonster.

  8. Why isn't this libel? by drinkypoo · · Score: 3, Interesting

    with Fox claiming about Aereo, 'Make no mistake, Aereo is stealing our broadcast signal.'

    It's clearly not theft. Why is it not illegal for Fox to make this fraudulent claim in a public forum?

    --
    "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    1. Re:Why isn't this libel? by Gryle · · Score: 2, Insightful

      I'll believe that when I can have a corporation executed.

      --
      Only two things are infinite, the universe and human stupidity, and I'm not entirely sure about the universe - Einstein
    2. Re:Why isn't this libel? by oobayly · · Score: 2

      Well, have the government ever shut down a corporation? That'd count as execution*. It would be interesting to know what the capital punishment rate of corporations is to that of people.

      * The difference I suppose is that the soul of the corporation can be reincarnated into a similar body and even live in the same house. Realisation of the day - corporations are Hindu.

    3. Re:Why isn't this libel? by drinkypoo · · Score: 4, Insightful

      Why is it not illegal for Fox to make this fraudulent claim in a public forum?

      Because some of us believe in free speech rights.

      It is already illegal to knowingly make false claims, especially of a legal nature, in the public eye — specifically, with the intent to cause harm, which this clearly represents. It is a deliberate attempt to mislead for financial gain and other purposes.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
  9. Constitution by benjfowler · · Score: 2, Interesting

    Since the Americans hold their Constitution so dear, almost to the level of Scripture itself, maybe a proper way to deal with corporate parasitism, is to make it unconstitutional to make any law which props up a failing business model or restricts competition in a free market.

  10. Re:NIH? by gl4ss · · Score: 3, Insightful

    no, not a NIH.

    they already invented getting paid for retransmitting the signal they broadcast.

    it's not the pvr. it's the retransmit of something they're sending out. aereo is cutting into their fat, fat margin on that service(you'd think that a ota free channel would only be aiming for highest possible viewers?? HAHAHAHA NOT SO! because this is bizarro world. they're shooting for the highest possible money extraction from cable companies and the cable companies customers.).

    --
    world was created 5 seconds before this post as it is.
  11. Great Advertisement. by Usefull+Idiot · · Score: 2

    If you weren't suing them, I may not have heard of their service. Now that I'm aware of it, I will most likely sign up once they are in my area.

  12. Re:If Aereo is so horrible (Napster, Bittorrent).. by ColdWetDog · · Score: 3, Insightful

    .. then why don't the big broadcaster get together and buy Aereo before it can - supposedly! - "do more damage"

    Three reasons:

    1) If you win in court, it prevents other people from trying to pull the same stunt
    2) It may well be cheaper to pay lawyers to litigate against Aereo instead of attempting to buy it.
    3) It just might not be for sale.

    --
    Faster! Faster! Faster would be better!
  13. Re:Hmmm I wonder... by fuzzyfuzzyfungus · · Score: 4, Insightful

    I wonder if this isn't a big deal because Aereo isn't rebroadcasting. Broadcasting is transmitting to a wider audience. Aereo has a single antenna distributing to a single person. Obviously this is what Aereo thinks is the case, the stream from my DVR to my TV is not a "rebroadcast." Contrast this with the cable TV operators, who receive the signal once, often through specialized equipment, and send it to all of their local subscribers.

    That's the essence of Aereo's legal position(founded on the 'Cablevision Case', where CableVision's 'cloud DVR product, with a similar 'one tuner and storage allocation per user, controlled by the user' was upheld as licit).

    Team Broadcast is apparently shitting themselves for some combination of (A) reactionary stupidity and (B) fear that cable companies that currently pay absurd fees to retransmit OTA programming will find it cheaper to set up these goofy antenna-array things than to pay off the broadcasters(which is a pretty good sign that the broadcasters are currently overpaid, if such a silly mechanism actually saves money; but they obviously like being overpaid...)

  14. Retransmission fees are a scam anyway by DewDude · · Score: 5, Informative

    If you've ever had your provider get in to a deadlock contract with an OTA station; you'll realize retransmission fees are a scam.

    According to the law; a TV station has two options; they can negotiate a retransmission fee for a cable system; or invoke "must-carry", in which the cable provider is *required* to carry them. The station does not have to pay for a "must-carry" station; they are however required by law to carry them. That's bad for the cable company because they have to dedicate QAM space to a channel they may not want. However, if a cable provider negotiates a retransmission fee; they are allowed at that point to insert "local" ads over OTA stations.

    In reality; the stations are only screaming about *potential* loss of profits here. The real losers are the local advertisers; who are paying the bills to keep the station's OTA signal running. Thier ads will only get seen by people with OTA; and those times when a local company isn't inserting ads over airtime.

    This is why it's common in some areas for a cable/satellite provider to lose the right to carry a local channel. The station wants more money to reach it's demographic; and when a deal cannot be struck, the channel becomes unavailable. If it's a network affiliate; you lose that network entirely. FCC laws prohibit an "outside" station to be piped in to another market. Ironically; this law was made to protect local advertisers, ensuring they had a better chance to be seen in a market where their ads are already possibly being covered over with whatever promotion your provider is running this month.

    The ruling that Aereo is legal was upheld by an appellate court already. They found the place-shifting technology (which is what this is); did not constitute public performance. Likewise; since there was an individual receiver and antenna for each user; there was no breaking of any law.

    A2B TV does a similar thing; only with satellite TV. And they've even changed since I first found them. Used to be they'd get you set up with a cable TV account at whatever provider was local to the datacenter, along with a slingbox and "hosting space"; thier new model seems to use satellite TV and you have to send them a receiver. I own a Slingbox (two of them actually); and it's perfectly legal to have them hooked up to my TV's; of course I do pay for a TV service. But what about the Slingbox I sent to my friend in Texas with an OTA receiver so I could watch my favorite football team? Legally, it's my receiver and my hardware; so it *still* falls under placeshifting; and it's still not public retransmission.

    Networks are going to complain and bitch because they're "getting thier business model stolen"; they seem to forget thier original business model was providing a service for free that was funded by advertisers; that's shifted in to a service that's still provided free, but paid for by cable and satellite companies. I can't blame advertisers for wanting to pay next to nothing; would *you* want to pay top-dollar for advertising knowing the majority of your demographic on cable or satellite might not see it? Of course not.

    Again, it's just the networks sitting there looking at the potential profits they're losing because a lousy business model they created failed; one that was doomed for failure in the first place. What were they doing all those years when analog C-Band was still dominate; and they did not scramble the network fee? All those people were watching network TV without local inserted ads. What were they doing before the 1992 act and cable providers could literally pipe in any OTA channel their antenna farm could pick up; you know, back when the FCC mandated providers had to carry locals. Complicate the matter by the fact the FCC has allowed cable broadcasters to begin encrypting OTA feeds; which were once required to be left unencrypted.

    The real issue is if they get this declared illicit; what's to stop them going further? They could begin saying multi-room DVR is illegal; worse yet, they coul

  15. Re: Solution to the Problem by JWW · · Score: 2

    The problem here isn't that aero is using their signal for free, it's that the broadcast channels think they're entitled to money for retransmitting their signal over another medium. The FCC should make it illegal for broadcast companies to charge cable companies to carry their signal.

    I'm quite pissed that when their deal with my local cable company expires the fucking broadcasters have the gall to run ads asking me to demand my cable company caves to their extortion so that I can have the privilige of a higher bill.