Aereo Comes Up With a New Survival Strategy

Jul 10, 2014  •  Post A Comment

In the wake of its loss in the June 25 Supreme Court decision, Aereo has re-evaluated its business and has a new legal strategy: The service is a “cable system,” and, like any other cable system, says it is entitled to the compulsory copyright license, reports TVNewsCheck.

As previously reported, the Supreme Court reversed a lower court decision denying broadcasters’ injunction against Aereo, and ruled that the service provides a public performance, not a private one, as Aereo had argued. The broadcast networks has sued Aereo over copyright infringement.

But in the Supreme Court’s argument, it said that Aereo was similar to a cable system, noting that it has an “overwhelming likeness” to and “is for all practical purposes a traditional cable system.”

Aereo is using that language in a “next steps” letter sent to a New York district court this week, noting that it will continue to operate as a cable system. It is asking the district court to rule on its eligibility for the compulsory license, and noted that its survival is in “jeopardy.”

“Aereo is taking in no new revenue, and continuing to incur enormous costs such as employee salaries, equipment and lease payments and vendor payments,” the company said.

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