Aereo was disappointed with the Supreme Court ruling that it violated the copyright of broadcasting companies and distributors for streaming their television programs on the internet.
Aereo vows to continue to fight for consumers
According to Aereo, the decision of the Supreme Court is a” massive setback for American consumers” and vowed to continue to fight. The company provides live network TV streaming and allows consumers to pause, rewind or save a program they are watching through its cloud-based antenna/DVR technology.
Abacab Fund Sees Mispricing In Options As Black-Scholes Has Become “Inadequate”
Abacab Asset Management's flagship investment fund, the Abacab Fund, had a "very strong" 2020, returning 25.9% net, that's according to a copy of the firm's year-end letter to investors, which ValueWalk has been able to review. Commenting on the investment environment last year, the fund manager noted that, due to the accelerated adoption of many Read More
In a statement, Chet Kanojia, founder and CEO of Aereo said, “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.”
Bartees Cox, a spokesperson for Public Knowledge, a policy group based in Washington commented the Supreme Court’s decision was “very unfortunate for consumers.” According to him, “Aereo is a true innovator in the TV industry and provides high-quality and affordable programming for its customers.”
A chilling message to the technology industry
Kanojia emphasized that the company worked diligently to create a technology that complied with the law. He said the Supreme Court’s decision clearly demonstrated that the technology and its process or how it works does not matter.
In addition, Kanojia said, “This sends a chilling message to the technology industry. It is troubling that the Court states in its decision that, ‘to the extent commercial actors or other interested entities may be concerned with the relationship between the development and use of such technologies and the Copyright Act, they are, of course, free to seek action from Congress.’ (Majority, page 17) That begs the question: Are we moving towards a permission-based system for technology innovation?”
Antenna still essential to access free-to-broadcast television
Furthermore, Kanojia argued that it is still essential for more than 60 million Americans across the country to use an antenna to access free-to-air broadcast television. According to him, free-to-broadcast television should not only be available for those who can afford to pay for cable or satellite bundle.
Consumers in 11 cities are able to stream free-to-air broadcast television through Aereo’s technology by paying a membership fee for as low as $8 a month.
Supreme Court ruling lifted broadcasting companies’ stock.
The stock price of broadcasting companies including CBS Corporation (NYSE:CBS), Sinclair Broadcast Group Inc (NASDAQ:SBGI) went up by 5% and 16%, respectively after the Supreme Court ruling. The Walt Disney Company (NYSE:DIS), Twenty-First Century Fox Inc (NASDAQ:FOXA) and Comcast Corporation (NASDAQ:CMCSA) also gained around 1%.