Broadcasters Circle Wagons Against a TV Streaming Upstart

When Chase Carey, Rupert Murdoch’s top deputy at News Corporation, told broadcasters about his contingency plan to turn the Fox network into something available only on cable, he knew policy makers would be listening, too. But a few of them were busy that day, meeting with Chet Kanojia, the very man who had provoked Carey’s stark warning.

Kanojia had come to Washington to sell lawmakers and reporters on the virtues of his upstart service, Aereo, which scoops up the free signals of local television stations and streams them to the phones and computers of paying subscribers. Because Aereo cuts off the stations from the retransmission fees that they have grown to depend on, they are determined to shut down the service — even, the station owners say, if they have to take their signals off the airwaves to do so. Carey’s suggestion was dismissed by some as a hollow threat intended to scare the courts — which have ruled twice in favor of Aereo so far — and perhaps prod Congressional action. It is, at best, a far-fetched outcome. But it revealed a lot about the state of broadcasting, which appears increasingly antiquated in an age when wireless companies like AT&T and Verizon — instead of TV stations — are snapping up spectrum and using it to deliver Internet services like Aereo.