New streaming service rattles the broadcasting giants
The streaming service Aereo, which is currently only available in New York City has shaken the US broadcasting industry. Two of the top broadcasters have now threatened to head for the protection of the cable industry, if they can’t win their legal fight to half Aereo’s growing popularity. News Corp’s Fox and the Spanish-owned Univision have both said that they are considering hot-footing it to the relative safety of paid-for cable. A report from MSN Money suggests that the company executives are simply kicking up a fuss to try and scare Aereo off and get their viewers onside.
The chief operating officer of News Corp, Chase Carey, said on Monday (April 8, 2013) that Fox would become exclusively a cable network if it can’t win its battle against Aereo. “Aereo is stealing our signal,” claimed Carey, whilst vowing to persist in the legal battle against the start-up streaming company. Of course, if the switch were to happen, it would not be an easy one. The broadcasters own dozens of their own stations, which rely on the ‘free-to-air’ model, selling advertising and gaining viewers.
Whilst Aereo only operates in New York at the moment, they are already planning on expanding into 22 cities, this year alone. The service works by using tiny antennas, which are so small that they can fit on a fingertip. The antennas then connect to the Internet, streaming the TV signals to consumers’ sets. Aereo claims the service is legal, because each viewer has a personally assigned antenna.