Aereo Struck Down

Aereo_logo_optA high court ruling this week that sent a renegade over-the-air TV provider reeling could leave a scar that stretches into the digital ‘cloud.’

This week, the U.S. Supreme Court cinched shut a legal loophole that let upstart Aereo tap the prime-time broadcast signals of the major networks and stream them directly to customers, bypassing cable and satellite providers altogether and skirting the systems and agreements networks created to charge for their broadcasts. Those charges created a revenue stream worth about $4.3 billion in 2013.

A legal challenge arose almost the moment Aereo started two years ago intercepting the network signals relayed from the antennas atop the Empire State Building in New York City and sending those signals straight to subscribers’ computers or mobile devices. Aereo grew to serve 11 metro areas.

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