What Happens If Aereo Wins in Court?

Your next video will start in

Recommended Videos

  • Info

  • Comments


June 19 (Bloomberg) -- Bloomberg’s Ed Lee updates the latest news on Aeroe’s fight with the networks on “In The Loop.” (Source: Bloomberg)

Has been all over this case.

Let's play out both scenarios.

What if aereo wins in court?

It changes so much potentially.

The reason why it was brought to work in the first place is broadcasters are complaining because they are taking error signal and selling to consumers and they are not hang us a penny for that.

They are typically called retransmission fees.

If they win, that is four or $5 billion in these retransmission fees that can be left on the table that broadcasters albeit without.

. they could also change things on sports rights.

If asereo can take a blackout signal -- if they win, there's still a chance that on top of that, they are allowed to take that local sports signal and send out to someone.

Someone in new york and watch the san francisco 49ers game.

Can they go around the blackouts?

They could so it is not just for broadcasters.

That takes one big lever away from the cable companies.

There are a lot of things in play, the entire economics of the television industry could change in one fell swoop.

At the same time, there are deals already locked in that broadcasters have for like three years.

There are sports leases as much of seven years and nothing will change overnight but over the next few years, if they win, you will see jockeying.

There will probably be a lot of preparation for what will happen in the next 3-5 years.

The broadcasters have time to figure out what they can do.

They could take all their signals off air and not go directly from cable.

It is not calamitous by any means ifaereo wins but tv will change.

Other any indications that cable companies -- that broadcasters will the new they're only -- their own digital service?

They have all invested in different types of technologies and cbs is at the forefront of this.

They have invested some and they've got technology ready should ruling come down against them or in favor of aereo.

The second scenario is what if aereo loses?

Things are pretty much back to status quo.

Silicon valley will be like going back to the drawing board.

How can we disrupt television?

All mediums have been disrupted and tv is the one that has held out.

The economics of television have remained intact despite all the newfangled ways of watching tv these days.

It also means that the broadcasters and the cable networks will try to figure out a way to meet their consumer demand for easier ways of watching television and cheaper ways of watching television.

That will still change at some point.

Thank you for joining us and we are awaiting this decision.

It will happen in one hour so we will see.

Coming up, we will talk trade and the future of the export import bank.

Plus, oil prices are on the rise due to the violence in iraq and we will see what that may mean for the global economy.


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


BTV Channel Finder


ZIP is required for U.S. locations

Bloomberg Television in   change