Groundbreaking Internet TV startup Aereo's future is in doubt after a blockbuster Supreme Court ruling that it violated broadcasters' copyrights by taking their signals for free and sending them to Aereo's subscribers.
"This is pretty close to game over," said Mike Carrier, a Rutgers University law professor.
Nearly every major broadcaster had sued Aereo over its $8 a month streaming service, which lets subscribers watch over-the-air broadcasts on smartphones, iPads and other devices.
In his majority opinion, Justice Stephen Breyer said Aereo should be treated no different from a cable operator, and should pay the same retransmission fees to broadcasters.
"Aereo's system is, for all practical purposes, identical to a cable system," he said.
Aereo had argued that the individual antennas it gives subscribers are no different from traditional rabbit ears. Aereo CEO Chet Kanojia yesterday vowed to keep fighting.
"We are disappointed in the outcome, but our work is not done. We will continue to fight for our consumers and fight to create innovative technologies that have a meaningful and positive impact on our world," Kanojia said.
It's unclear what the future holds for Aereo's 80 Boston employees. Carrier said broadcasters will now have to ask a lower court for an injunction to stop Aereo from operating, which could take months.
For consumers, the biggest impact will be what does not happen, said Brett Sappington, a media analyst with Parks Associates.
"We were on the cusp of what could have been a very stark change in broadcast TV," Sappington said. "Had Aereo won, there might have been a very significant impact. This maintains the status quo."
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