Aereo will face big television broadcasters in the U.S. Supreme Court Tuesday on a controversial copyright law violation, which may lead to bigger proportions for the future of the technology.
Aereo is a company that started two years ago. It aims to stream TV programs to users through capturing broadcast airwaves using small antennas. Users have to pay a monthly fee of $8 for this service. The company can provide a lot of TV networks to users in several cities. Subscribers can use their mobile devices and computers to watch and record the programs they want using this device.
Those who have an antenna can get giant TV networks like Fox, NBC, ABC, and CBS for free.
Unlike Aereo, Comcast, Time Warner and other cable companies have to pay the big TV networks billions of dollars for the rights to be able to re-broadcast the TV channels in through the cable packages they offer.
According to aero, they do not have to pay billions of dollars because the capturing and retransmitting through broadcast signals to users in the internet is free.
Broadcasters are not happy about this set up. They sued Aereo because it is violating the copyright law and they are jeopardizing the business system of the broadcasting industry.
Here is how the U.S. Supreme Court’s decision becomes a pivotal role in the future of the broadcast industry. If they rule Aereo as legal, other cable companies can simply copy Aereo’s system to avoid paying billions of dollars to the broadcasting companies just to stream their programs in the cable packages they offer.
According to Aereo founder Chet Kanoji said what’s at stake is way bigger than the issue with Aereo. The Supreme Court is expected to come up with a decision this summer.