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by untog 4597 days ago
Well, no, when they say that Aereo cuts into their retransmission fees they mean that Aereo is retransmitting their signal without paying fees.

I don't support their fight against Aereo but I do get where they're coming from. If Aereo do it for free, why can't the cable networks turn around and say "we're not paying you retransmission fees any more, we're just going to do what Aereo does"? That would mean the networks lose a lot of money, and they're not exactly profit machines as it is. Get ready for a lot more ads.

3 comments

Pedantic but Aereo doesn't cut into retranmission fees, antenna viewing cuts into their retransmission fees. They are saying they don't want more people using antenna instead of cable. We can speculate why that is, probably antenna customers are less profitable or perhaps retransmission fees are a more stable income.
Yes- and that's why I don't support what they're doing. They're directing their legal wrath against Aereo (and so, Aereo's users) rather than attempting to solve what is actually a problem between the broadcast networks and cable companies.

But I do still get the root cause of what they're doing. And I don't particularly want my cable company to make even more money than they do already.

That would mean the networks lose a lot of money, and they're not exactly profit machines as it is

You're looking at this precisely how the NFL and MLB want you to look at it. The reality is that MLB and the NFL are congressionally-sanctioned monopolies that make a ton of money for the owners and players. Ever see an episode of MTV's Cribs?

The networks are "not exactly profit machines" as you say because the leagues are charging them so much. The networks in turn have to charge an arm and a leg to sports fans to make up for it. Sports fans are rebelling with both illegal and legal options like Aereo.

I don't know how things will play out but when you have a situation where a single person is making over $150,000 to play a single game of baseball, that's probably not a sustainable business model (see http://en.wikipedia.org/wiki/List_of_largest_sports_contract...).

To be fair, the cable company transmits 1 signal to everyone, with Aereo each person has their own attenna. It's not much different from a service like slingbox except that slingbox uses your actual home signal whereas w/ Aereo you are effectively renting an antenna.
Right, but that's just technical semantics, really. Aereo installs an individual antenna for every person to skirt around existing rules. By any objective analysis it's a total waste of time and money.
> Aereo installs an individual antenna for every person to skirt around existing rules.

One person's "To skirt around" is another's "To comply with".

But that was the only technical method that was available to comply with the law. The supreme court practically laid out that business model for them in a prior decision.

It's a total waste of time and money, but it's also legal.

It's actually legal semantics, which are the only relevant semantics here. Aereo must jump through these ridiculous hoops for their service to remain within the letter of the law.