http://tinyurl.com/7cdax66
Okay, let's start this out right by noting that the headline is only
slight hyperbole. The TV networks are suing a company called Aereo for
letting people connect, via the internet, to a TV antenna that picks up
over-the-air (i.e., free) TV programming in NYC. I still can't quite
figure out what the legal argument is here, other than that it upsets
their business model. Watching over-the-air TV programming is,
obviously, perfectly legal. We've yet to see a competent claim that
place-shifting legal TV is illegal. About the only real complaint is
that this has the chance to drive more people to cut the cord, rather
than pay ridiculously high cable/satellite TV prices. Of course, the
networks these days thrive because of the insanely high carriage fees
they get to charge the cable/satellite guys to include their network
programming.
But, you know, disrupting the TV networks business model isn't illegal.
Yet, as with the DISH case, where the broadcast networks seem to be
claiming that skipping commercials is illegal, the networks in the Aereo
case don't seem to have much of an argument other than "this disrupts
our business model."
In a hearing about whether or not the court should issue a preliminary
injunction (as has happened in the similar, but different in important
ways, ivi and Zediva cases) the judge didn't just roll over for the
networks, and allowed Aereo's lawyers to grill an exec from CBS, who
more or less admitted that they think (1) the DVR is a bigger threat
than Aereo and (2) that their main issue is that Aereo may lead to more
cord-cutting.
But, again, getting more people to cut the cord isn't illegal. Their
argument, once again, appears as if they are seriously asserting what
has been jokingly referred to as a "felony interference with a business
model" case. The network exec actually tried to make the argument on the
stand that the fact that someone might cancel their cable subscription
to use Aereo (cord-cutting) is a form of "harm" that requires Aereo be
shut down by preliminary injunction. Thankfully, the judge wasn't buying
that logic:
The judge also got into the act somewhat, addressing
broadcasters' insistence that any customer who cancels
his or her cable service to sign up with Aereo is a problem.
How does subtracting one subscriber impact advertising,
asked the judge, which caused the CBS executive to admit
that it would have to be one Nielsen household that canceled
for impact, and later that it would more likely have to be a
substantial number of defections.
There was some other damning info that came out in the hearing,
including the fact that the TV networks refused to even talk to Aereo,
never sent a cease & desist, and only decided to sue once they found out
that Barry Diller was backing Aereo. Hopefully, the judge refuses the
injunction. At the very least, it's good that he's not willing to just
roll over and kill innovative startups because they mess with the
entertainment industry's business model.