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by twelvedigits 4227 days ago
Keeping in mind that this content is being broadcast over public spectrum, you're right: the content is the most valuable product.

As a consumer, I want to access that content in an efficient, functional manner. My tax dollars are paying for it. So, I bought an antenna. It couldn't pick up any stations in my apartment, and this is a very common problem in NYC. Even if it picked up stations, I'd have to buy a separate device to record shows so that I can watch them on my schedule.

With Aereo, I was renting an antenna. The company built capital-intensive, power-sucking data warehouses in every city in which it operated and filled them with antennae for every customer. Aereo provided me with a cloud-based antenna, no different than buying one from Best Buy or Amazon.

Only:

(a) the signal was clear and reliable, not fuzzy. My friend has a long coaxial cable connected to his television and he tapes a 12" x 12" antenna to his window. Kind of ridiculous.

(b) they included a cloud-based DVR that allowed me to watch what I want, when I want. They improved the relationship that I had with broadcast content.

Aereo was very clear about the fact that they built a solution that adhered to the law because everyone had an individual antenna. This solution was very expensive, but it worked and though it was described as a Rube Goldberg machine, it made sense.

And here's the ultimate rub for content companies: now I don't watch your content at all. I don't see your ads. I have someone else's cable password, and I watch things sporadically, but I don't discover new shows like you want me to.

1 comments

Your tax dollars are paying for TV show production?
No. But our eyeballs watching those paid ads on free broadcast TV are enabling payments + profit for the production of that content. The numbers may vary by broadcaster and program, but the business model is clear, or atleast was.
The people that make TV shows make money in several different ways. Paid ads are only a portion of their business.