Aereo May Be Retransmission Game Changer

Aereo — and the court’s rejection so far of broadcasters’ request to stop it from streaming their content for free — could ultimately be a major impediment to already complex retransmission consent negotiations.

“Aereo is totally disrupting the marketplace,” says BIA/Kelsey Group VP Mark Fratrik. Resolving the Aereo issue, which broadcasters’ plan to continue pursuing in court, is one of the biggest issues facing them in the year ahead, says Fratrik, speaking at the NAB Show in Las Vegas. A non-paying streaming service like Aereo could “break the foundation” of the retransmission consent process between broadcasters and paid TV providers including cable and satellite companies, Fratrik says: “There is a possibility of dramatically affecting the rev stream that is important to local television stations as well as the networks.”