Aereo and cord cutters are in a world of pain today after the Supreme Court ruled that the service has infringed on broadcaster's copyright and needs to pay a fee in order to keep running. We expected this to happen, but what we didn't see coming is Aereo suspending its service so soon after the ruling.
The victory in the Supreme Court should make traditional broadcasters such as CBS Corp, Comcast Corp's NBC, Walt Disney Co's ABC, and Twenty-First Century Fox very happy, since it would make it very difficult for another company to pull off a similar stunt comparable to Aereo.
As of 11 AM on the 29th of June, Aereo has suspended service to all its customers, and it is not certain when the company will return coverage again. As per Aereo, it will return all monthly payment to customers.
"On Wednesday, the United States Supreme Court reversed a lower court decision in favor of Aereo, dealing a massive setback to consumers," Aereo CEO Chet Kanojia said in a letter to customers via its blog.
Kanojia went on to add that the case has been returned to the lower Court. The team will then take this time off to plan what needs to be done to keep Aereo in business and likely work with broadcasters to determine how much money they should get. Furthermore, if Aereo should ever come back online, there's a high chance that prices might change to reflect the new burden the company has acquired.
We expect Aereo to return service to customers, along with continuing the fight to escape from paying broadcasters a share of the profits.
For years, cord cutters have been trying their very best to stay away from traditional TV, but it has been proved difficult for some. This latest ruling is no doubt a step in the wrong direction for these individuals, but as the Internet continues to become the central part of our lives, we are certain the day will come when cord cutters will prevail.
As such, while this loss is a setback, it will only strengthen the resolve of cord cutters and companies willing to push the buttons on traditional broadcasters.
