Supreme Court to hear dispute over TV broadcasts on Internet

By MARK SHERMAN, Associated Press Published: April 21, 2014
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— Thirty years after failing to convince the Supreme Court of the threat posed by home video recordings, big media companies are back and 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 marveled at their ability to pop a cassette into a recorder and capture their favorite programs or the sporting event they wouldn’t be home to see.

Now the entertainment conglomerates that own U.S. television networks are waging a legal fight, culminating in Tuesday’s Supreme Court argument against a startup business that uses Internet-based technology to give subscribers the ability to watch programs anywhere they can take portable devices.

Backed by billionaire

The source of the companies’ worry is Aereo Inc., 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.

Retransmission fees

The U.S. networks increasingly are reliant on these retransmission fees, estimated at $3.3 billion last year and going up to more than $7 billion by 2018, according to research by SNL Kagan, which analyzes media and communications trends.

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