Why the Aereo Shutdown Will Be a Disaster for Broadcast TV

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[Commentary] When I finally heard that the Supreme Court had shut down the groundbreaking digital video system, I was amazed by how universally joyful TV broadcasters and distributors were about the ruling and ensuing shutdown.

Too bad they weren’t in Anaheim with me, because despite Aereo’s now-illegal Rube Goldberg-esque transmission technology, it offered a distinctive and revolutionary way for broadcast TV to remain relevant to younger viewers.

Unfortunately, most TV execs probably never had a chance to actually use Aereo. And that’s too bad, because the well-designed service delivered a unique and compelling way for traditional TV -- still mostly watched on TVs -- to build an audience among digital natives.

Now that the Aereo experiment is over, network executives will be newly emboldened to continue to circle the wagons and mostly keep doing business in the same old way -- via traditional distributors and to the dumb devices that, when millennials do watch, they usually mostly ignore in favor of their favorite screens in their hands (disparagingly called the “second screen” by the traditional TV industry). Unfortunately, they will continue to see their audience decline -- and revenue along with it.

The broadcast upfronts just concluded, and even though there was a slight increase in the rates charged to reach each viewer, overall revenue is likely to be down across most of the English-language broadcasters, due to declining viewership.

[“Cord Cutter” works as Senior Digital Exec for a major programming company]


Why the Aereo Shutdown Will Be a Disaster for Broadcast TV