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Why the Supreme Court might pull the plug on Aereo

On Tuesday, the Supreme Court of United States will hear arguments on the legality of Aereo for providing broadcast TV services to tablets, PCs and smart phones. Actually, armies of plaintiffs have filed plenty of cases against Aereo for copyrights infringement. The accused company is saying that it has not violated the copyrights and most of the cases are mainly lodged to affect the status of the company.

It is said that a bench of 9 judges of U.S Supreme Court will decide the fate of Aereo on Tuesday.  According to media reports, CBS’s (CBS) CBS Broadcasting, Walt Disney’s (DIS) American Broadcasting Company, 21st Century Fox’s (FOX) Fox Television Stations, Comcast’s (CMCSA) NBC Universal and many others will ask the court to pull up the Aereo’s plug.

On the other hand, U.S. Solicitor General’s Office – expressing the opinion of government agencies and copyrights office- is supporting the litigators.  It was crystal clear when the broadcasters had filed their suit in Manhattan federal court in 2012 that the result of this case would last far reaching consequences for cable operators and broadcasting industries.

It goes without saying that Aereo was the brainchild of engineer Chet Kanojia who had enjoyed full support from Barry Diller’s IAC/InterActive Corp that indirectly owns ten percent shares of the company.  Last but not the least, Aereo offers live broadcasting services on smart phones and computers at the rate of $8 per month and this broadcasting does not include cable shows.



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