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Aereo Files For Bankruptcy
An anonymous reader writes: After losing its Supreme Court case in June and briefly attempting to transform itself into a cable company, Aereo is now filing for chapter 11 bankruptcy. Their service worked by letting people stream over-the-air television to their internet-connected devices. The content industry pushed back, and though Aereo argued its way through several lower courts, they say, "The U.S. Supreme Court decision effectively changed the laws that had governed Aereo's technology, creating regulatory and legal uncertainty. And while our team has focused its energies on exploring every path forward available to us, without that clarity, the challenges have proven too difficult to overcome."
The U.S. Supreme Court decision effectively changed the laws
The existing laws defined them as a cable company. They were not very smart to think otherwise. The laws may need to go away, but that was always the correct interpretation.
That's incorrect... If they were defined as a cable company, they could pay compulsory royalties and carry the content legally. However, the District Court recently held that no, they are not a cable company, and have no ability to pay those royalties for a license.
So, in essence, you have the Supreme Court saying that they're not NOT a cable company, and the District Court saying that they're NOT a cable company. It leaves them in a position where they are neither a cable company nor NOT a cable company, and therefore can never carry broadcast content, regardless of whether they want to pay for it or not.