Aereo

About Aereo

Aereo, Inc. was a New York-based technology company that aimed to alter television consumption habits by providing access to live and time-shifted over-the-air broadcast television on internet-connected devices. Founded in February 2012 by Chaitanya “Chet” Kanojia, the service was backed by Barry Diller's IAC. Kanojia, an engineer with a history of entrepreneurship, previously founded and led Navic Networks, an advanced television advertising firm acquired by Microsoft in 2008. His experience in the media landscape and possession of numerous patents in data communications informed Aereo's approach.

The company's business model was centered on a monthly subscription service that allowed consumers to watch live broadcast television and utilize cloud-based DVR capabilities without requiring any dedicated hardware in their homes. Aereo's core technology involved vast arrays of dime-sized, individual antennas housed in remote warehouses. When a subscriber selected a channel, a single antenna was assigned to them for that session, capturing the broadcast signal. This signal was then transcoded and streamed over the internet to the user's device, be it a computer, smartphone, or tablet. Pricing was structured with monthly plans starting around $8 for access and 20 hours of DVR storage.

Aereo's launch was met with immediate and significant legal challenges from major television broadcasters, including ABC, CBS, NBC, and Fox. The broadcasters argued that Aereo's service constituted a "public performance" of their copyrighted works, and since Aereo did not pay the retransmission fees that cable and satellite companies do, it was infringing on their copyrights. Aereo's defense hinged on the argument that because each user was assigned an individual antenna, the transmission was a private performance, not a public one, akin to a consumer using their own personal antenna. After initial victories in lower courts, the case escalated to the Supreme Court. In a landmark 6-3 decision on June 25, 2014, the Court ruled against Aereo, stating that the service was "substantially similar" to a cable company and was indeed performing the works publicly. This decision effectively dismantled the company's legal foundation. Following the ruling, Aereo suspended its services on June 28, 2014, and filed for Chapter 11 bankruptcy in November 2014. Its assets were later acquired by DVR company TiVo for $1 million in March 2015.