Aereo’s in a Catch-22 when it comes to cable, rules are rigged against internet TV

The Supreme Court ruled in June that Aereo, whose service helped subscribers stream TV signals, is like the cable companies that need a license to transmit over-the-air TV. But when Aereo responded by trying to buy such a license, the Copyright Office stated it is not a cable service -- leaving the start-up in a legal no-man’s land where it is likely to die.

The situation sums up the surreal world of TV regulation, which is built on an outdated set of rules that serve to entrench the current model of TV distribution. Under this model, broadcasters charge to stick consumers with bloated bundles of channels, and newer internet services like Aereo get frozen out altogether. Used as a sword, the retransmission consent rules mean the broadcasters can cause a channel to “go dark’ for months until a cable service agrees to pay a fee.