3 Pay-TV Giants Consider Creating Their Own Aereo

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Oct. 25 (Bloomberg) -- DirecTV, Time Warner Cable and Charter Communications are considering capturing free broadcast signals from TV networks to avoid paying billions of dollars in so-called retransmission fees. Bloomberg’s Jon Erlichman discusses with Emily Chang on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Directv, time warner cable content charter communications are weighing the idea of starting aereo-like services.

Aereo has been battling with tv broadcasters in court.

Jon erlichman is in l.a. and helped break this story.

What can you tell us about this?

We know this -- there is a love-hate relationship with the broadcasters.

In recent years, you have heard the stories of these higher fees that the page tv providers have to pay to those networks.

It is called retransmission fees.

The broadcasters say aereo cannot do that.

There is a long court battle.

If aereo walks away successful in this legal battle, that pay- tv providers have to think about something.

They want to pay those same fees that they have been paying is aereo doesn't have to pay them?

And what about the idea of starting their own aereo-like services?

Directv, time warner cable, and try to have considering this.

Can they partner with aereo as well?

Absolutely.

If you can make that technology yourself, why not do it yourself?

That is where things are going.

I'm sure the folks would say it is not that easy to replicate our technology.

What about the technology part of it?

Yeah.

There is proprietary technology that aereo has.

At the same time, it might the enjoying that it has first mover advantage.

Admittedly, the company has described itself or others have described as a modern-day -- there are people inside these pay-tv providers who we have spoken with that basically feel like they are in a position to replicate that technology and maybe take it another step.

It is interesting that the story began as aereo is on the scene and what does that mean for tv providers has shifted to a start of what aereo means for the broadcasters.

Jon erlichman, thank you.

This text has been automatically generated. It may not be 100% accurate.

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