Supreme Court Rules Against Aereo in Broadcasters’ Challenge

In a decision with far-reaching implications for the television industry, the Supreme Court ruled that Aereo, a start-up streaming service, had violated copyright laws by capturing broadcast signals on miniature antennas and delivering them to subscribers for a fee.

The 6-3 decision was a victory for the major television networks, which had argued that Aereo’s business model amounted to a theft of their programming. The judges’ ruling leaves the current broadcast model intact while imperiling Aereo’s viability as a business after just over two years in existence.

In arguments before the court in April, the broadcasters contended that Aereo and similar services threatened to cut into a vital revenue stream -- the billions of dollars they receive from cable and satellite companies in retransmission fees, the money paid to networks and local stations for the right to retransmit their programming. The networks said this revenue was so essential that they would have considered removing their signals from the airwaves had the court ruled for Aereo.

The start-up contended that the service it provided through warehouses of small antennas was merely helping its subscribers do what they could lawfully do since the era of rabbit-ears: watch free broadcast television delivered over public airwaves. Both Barry Diller, who heads Aereo owner IAC/InterActiveCorp, and Aereo CEO Chet Kanojia have expressed doubt about whether Aereo could remain in business if the Supreme Court ruled against it.