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Aereo Bankruptcy: Streaming Service Can't Overcome Supreme Court Decision

Image: Aereo Bankruptcy: Streaming Service Can't Overcome Supreme Court Decision
Aereo CEO and founder Chet Kanojia. (Brendan McDermid/Reuters/Landov, file)

By    |   Friday, 21 Nov 2014 02:55 PM

Aereo filed for Chapter 11 bankruptcy protection this week, conceding to a U.S. Supreme Court decision that the online streaming service thinks is too difficult to overcome, The Associated Press reported.

The Internet startup — which is backed by Barry Diller — made waves earlier this year by letting people record and stream broadcast TV online. At the time, it was seen as an alternative to cable, offering a few dozen local broadcast channels and the Bloomberg TV financial channel on multiple devices for just $8 a month.

Hulu offers full episodes of popular shows from broadcast networks ABC, NBC, and Fox the next day for free. But Aereo offered live streaming of those TV channels.

In June, the Supreme Court ruled that Aereo operates like a cable TV company. As a result, the court said the service violates copyright law unless Aereo pays broadcasters licensing fees for offering TV station programs to customers' tablets, phones, and other gadgets.

Three days after the court ruling, Aereo announced that it was temporarily closing down its operation.

CEO Chet Kanojia said in a statement Friday on the company's website that the Supreme Court decision "effectively changed the laws that had governed Aereo's technology, creating regulatory and legal uncertainty."

Kanojia said that the Chapter 11 filing will allow Aereo Inc. to maximize the value of its business while avoiding the cost and distraction of litigation.

Aereo also named Lawton Bloom as its chief restructuring officer.

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Aereo filed for Chapter 11 bankruptcy protection this week, conceding to a U.S. Supreme Court decision that the online streaming service thinks is too difficult to overcome, The Associated Press reported.
aereo, bankruptcy, streaming, service
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2014-55-21
Friday, 21 Nov 2014 02:55 PM
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