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  1. #1
    D'oh!
    heytterebea's Avatar
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    Broadcasters battle internet TV threat

    Thirty years after failing to convince the Supreme Court of the threat posed by home video recordings, big US media companies are now trying to rein in another technological innovation they say threatens their financial well-being.

    The battle has moved out of viewers' living rooms, where Americans once marvelled at their ability to pop a cassette into a recorder and capture their favourite programmes or the sporting event they wouldn't be home to see.

    Now the entertainment conglomerates that own US television networks are waging a legal fight, culminating in today's Supreme Court argument against a startup business that uses internet-based technology to give subscribers the ability to watch programmes anywhere they can take portable devices.

    The source of the companies' worry is Aereo, which takes free television signals from the airwaves and sends them over the internet to paying subscribers in 11 cities. Aereo, backed by billionaire Barry Diller, has plans to more than double that total.

    Broadcasters including ABC, CBS, Fox, NBC and PBS have sued Aereo for copyright infringement, saying Aereo should pay for redistributing the programming the same way cable and satellite systems do.

    The US networks increasingly are reliant on these retransmission fees, estimated at US$3.3 billion last year and going up to more than US$7 billion by 2018. They fear that they will lose some of that money if the Supreme Court rules for Aereo.

    Aereo's service starts at US$8 ($9.30) a month and is available in New York, Boston, Houston and Atlanta, among others. Subscribers get about two dozen local over-the-air stations, plus the Bloomberg TV financial channel.

    In the New York market, Aereo has a data centre in Brooklyn with thousands of coin-size antennae. When a subscriber wants to watch a show live or record it, the company temporarily assigns him an antenna and transmits the programme over the internet to the subscriber's laptop, tablet, smartphone or other device.

    The antenna is only used by one subscriber at a time, and Aereo says that's much like the situation at home, where a viewer uses a personal antenna to watch over-the-air broadcasts for free.

    Broadcasters and their backers argue that Aereo's competitive advantage lies not in its product, but in avoiding paying for it. The broadcasters told the court that Aereo's "competitors pay for the rights to retransmit 'live TV' to the public as they must to avoid liability for copyright infringement while Aereo does not".

    The federal appeals court in New York ruled that Aereo did not violate the copyrights of broadcasters but a similar service has been blocked by judges in Los Angeles and Washington.

  2. #2
    Power User josephs8's Avatar
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    Lets hope the supreme court doesnt make a very wide ruling because this could affect so many cloud based storage sites if it is a loose ruling.


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