DECISION: AMERICAN BROADCASTING COMPANIES V. AEREO
The Supreme Court sided with TV networks against Aereo on Wednesday, ruling in a 6-3 decision that the streaming service violated copyright laws by using antennas to transmit broadcast networks over the Internet for a fee. “Blocking this technology is a big loss for consumers,” said Aereo backer Barry Diller, who told CNBC the company “is over.” The National Association of Broadcasters maintained the ruling “sends an unmistakable message that businesses built on the theft of copyrighted material will not be tolerated.”
CBS CEO and President Les Moonves, who has been vocal throughout the court hearings leading up to the SCOTUS case, told Bloomberg TV yesterday: “What Aereo was doing was not about technology: it was about theft. Yes, it was a new technology and there’ll be others, but right now because of the Supreme Court ruling, people will have to pay for our content.”
NBC’s statement from Paul Clement, the attorney for the petitioners (CBS, Disney/ABC, Fox and NBCU), said “Today’s decision is a victory for consumers. The Court has sent a clear message that it will uphold the letter and spirit of the law just as Congress intended.”
The Walt Disney Company (owner of ABC) told Cynopsis, “We’re gratified the Court upheld important copyright principles that help ensure that the high-quality creative content consumers expect and demand is protected and incentivized.”
Omnivision Entertainment and MyDamnChannel CEO and Founder Rob Barnett, who said in April that he thinks Aereo’s technology will eventually be acquired by one of the major broadcasters, today told Cynopsis: “The best innovations will continue to come from entrepreneurs and visionary new companies who move with speed, smarts and passion to deliver the best content to fans at a fair price. The new explosion of mergers and acquisitions in digital media proves that Goliath is hard at work, figuring out how to best deal with David.”
Check out the full SCOTUS opinion here.