|By Shelly Palmer||
|June 29, 2014 03:01 AM EDT||
After months of debate and speculation, the U.S. Supreme Court on Wednesday ruled against internet TV service Aereo in a 6-3 decision. The decision was a win for broadcasters that argued Aereo violated their copyright. Even though lesser courts had sided with Aereo, the Supreme Court saw it differently, effectively killing Aereo (at least in its current form).
“It’s over now,” said Barry Diller, whose company IAC led a $20.5 million funding for Aereo in 2012. Diller said Aereo “did try” but has said in the past that there is “no Plan B” if the Supreme Court rules against Aereo.
21st Century Fox said the ruling was “a win for consumers that affirms important copyright protections.” Aereo’s founder and CEO Chet Kanojia said the ruling is “a massive setback for the American consumer” and that it sends a “chilling message to the technology industry.” Aereo says it will continue to fight, but the definitive ruling leaves them with little room to operate.
My good friend, Gary Shapiro, CEO of the Consumer Electronics Association, wrote that the ruling “is a disappointment for startups, consumers and proponents of technological progress” as “more and more of us are demanding the ability to view TV programming on our own tablets and smartphones, not just our TVs.”
The Supreme Court’s ruling directly affected a very small slice of the current TV landscape. Aereo, which launched in 2012 in NYC, is only available in 13 cities and only has about 100,000 subscribers. However, its ramifications for the future are much, much greater – especially considering that in 36 months, more people will be watching primetime television programming online than on broadcast TV. This ruling delays the inevitable – and helps broadcasters keep their heads in the sand.
What the Ruling Means for Broadcasters
The Supreme Court’s ruling against Aereo helps keep the status quo for broadcasters and major networks – which is exactly what they wanted. Major networks were threatening to pull their stations off the air and move to subscription-only if Aereo had won – they said Aereo would create a blueprint that would eventually let cable providers stop paying retransmission fees. (They were right about that specific point.)
The ruling is also a win for the NFL and MLB, both of which said Aereo exploited their copyrighted telecasts and both had threatened to move their games to cable if Aereo was deemed legal.
Les Moonves, CEO of CBS, says the ruling means broadcasters can stay in business: “We will continue to do the same high-quality, premium programming that we’ve done and we will deliver it. This is a pro-consumer thing.”
What the Ruling Means for You
Even if you weren’t an Aereo subscriber, the ruling limits your TV options – and brings into question other cloud-based products you may be using.
Aereo aimed to disrupt cable. Diller said Aereo offered an “alternative to the bundle” that consumers are forced to accept from cable providers.
“It’s not a big [financial] loss for us, but I do believe blocking this technology is a big loss for consumers,” he said. “I salute Chet Kanojia and his band of Aereo’lers for fighting the good fight.”
The ruling is a blow for cord-cutters – both the ones who have already given up on cable and the ones who planned to do so in the near future. It eliminates an inexpensive option to get live TV on their computers, alongside other subscription services like Netflix and Hulu Plus.
A sea change is coming in the broadcast world. Consumers are unhappy with the expensive (and restrictive) subscription models cable and satellite providers are offering. The most recent yearly survey from Temkin Group found support for all of the largest pay TV providers had fallen in the past year. The survey also showed that these pay TV providers were the second worst in customer satisfaction across the 43 industries; the only companies that fared worse were internet service providers.
As Gary Shapiro wrote, the ruling also means that “the migration away from local programming in favor of new alternatives offered by HBO, Netflix, Amazon, YouTube and other innovators in the content and delivery space will continue.” Our expectation of TV is WiWWiWWiW (What I want, When I want, Where I want). Aereo offered broadcast TV that fit that model; traditional broadcasters do not.
What the Ruling Means for the Rest of the Tech World
The bigger fear is that a ruling against Aereo could disrupt and endanger cloud computing – where storing videos and other content on remote servers is the name of the game. Justice Stephen Breyer said the ruling should not affect cloud-based content services or companies (like Google, Microsoft or Dropbox), but that could still be a future battleground.
Could these services such as Box, Dropbox and Google Drive, be next on the chopping block? The types of services that let you stream copyrighted materials stored on a server – like music, books and movies – in exactly the same manner as the technology Aereo was using. Aereo is afraid of these consequences – that’s the “chilling message” Kanojia spoke about.
“We know what the Supreme Court intends to do, which is to say [Aereo] is illegal and nothing else, at least presumptively, is,” said Jessica Litman, a professor at the University of Michigan’s law school. However, “there’s a bunch of ambiguity in the attempted carve-out of cloud storage services.”
The Future of Aereo and TV
Aereo doesn’t have the revenue to pay the retransmission fees major broadcast networks do. It also doesn’t have the money to begin an expensive legal battle. It’s likely this is the end of the road for Aereo, unless it completely re-works its business model – which seems antithetical to the basis for the company.
“If broadcasters won’t adapt to what we as viewers want,” writes Gary Shapiro, “they will continue to face challenges from disruptive innovators like Aereo.” Let’s hope so. I would hate to think that this ruling inhibits innovation in any way, but only time will tell.
SYS-CON Events announced today that Pulzze Systems will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
Sep. 30, 2016 04:30 AM EDT Reads: 1,920
We’ve been doing it for years, decades for some. How many websites have you created accounts on? Your bank, your credit card companies, social media sites, hotels and travel sites, online shopping sites, and that’s just the start. We do it often without even thinking about it, quickly entering our personal information, our data, in a plethora of systems. Sometimes we’re not even aware of the information we are providing. It could be very personal information (think of the security questions you ...
Sep. 30, 2016 04:00 AM EDT Reads: 4,880
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
Sep. 30, 2016 03:45 AM EDT Reads: 2,234
SYS-CON Events announced today that ReadyTalk, a leading provider of online conferencing and webinar services, has been named Vendor Presentation Sponsor at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. ReadyTalk delivers audio and web conferencing services that inspire collaboration and enable the Future of Work for today’s increasingly digital and mobile workforce. By combining intuitive, innovative tec...
Sep. 30, 2016 03:45 AM EDT Reads: 3,066
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
Sep. 30, 2016 03:15 AM EDT Reads: 1,747
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
Sep. 30, 2016 03:00 AM EDT Reads: 1,934
WebRTC adoption has generated a wave of creative uses of communications and collaboration through websites, sales apps, customer care and business applications. As WebRTC has become more mainstream it has evolved to use cases beyond the original peer-to-peer case, which has led to a repeating requirement for interoperability with existing infrastructures. In his session at @ThingsExpo, Graham Holt, Executive Vice President of Daitan Group, will cover implementation examples that have enabled ea...
Sep. 30, 2016 03:00 AM EDT Reads: 1,625
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, provided tips on how to be successful in large scale machine learning...
Sep. 30, 2016 02:45 AM EDT Reads: 2,431
In his session at @ThingsExpo, Kausik Sridharabalan, founder and CTO of Pulzze Systems, Inc., will focus on key challenges in building an Internet of Things solution infrastructure. He will shed light on efficient ways of defining interactions within IoT solutions, leading to cost and time reduction. He will also introduce ways to handle data and how one can develop IoT solutions that are lean, flexible and configurable, thus making IoT infrastructure agile and scalable.
Sep. 30, 2016 02:15 AM EDT Reads: 1,638
DevOps and microservices are permeating software engineering teams broadly, whether these teams are in pure software shops but happen to run a business, such Uber and Airbnb, or in companies that rely heavily on software to run more traditional business, such as financial firms or high-end manufacturers. Microservices and DevOps have created software development and therefore business speed and agility benefits, but they have also created problems; specifically, they have created software sec...
Sep. 30, 2016 02:00 AM EDT Reads: 1,387
SYS-CON Events announced today that Numerex Corp, a leading provider of managed enterprise solutions enabling the Internet of Things (IoT), will exhibit at the 19th International Cloud Expo | @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Numerex Corp. (NASDAQ:NMRX) is a leading provider of managed enterprise solutions enabling the Internet of Things (IoT). The Company's solutions produce new revenue streams or create operating...
Sep. 30, 2016 02:00 AM EDT Reads: 2,083
To leverage Continuous Delivery, enterprises must consider impacts that span functional silos, as well as applications that touch older, slower moving components. Managing the many dependencies can cause slowdowns. See how to achieve continuous delivery in the enterprise.
Sep. 30, 2016 01:45 AM EDT Reads: 2,192
SYS-CON Events announced today that Tintri Inc., a leading producer of VM-aware storage (VAS) for virtualization and cloud environments, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Tintri VM-aware storage is the simplest for virtualized applications and cloud. Organizations including GE, Toyota, United Healthcare, NASA and 6 of the Fortune 15 have said “No to LUNs.” With Tintri they mana...
Sep. 30, 2016 01:15 AM EDT Reads: 2,968
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
Sep. 30, 2016 12:45 AM EDT Reads: 2,983
IoT is fundamentally transforming the auto industry, turning the vehicle into a hub for connected services, including safety, infotainment and usage-based insurance. Auto manufacturers – and businesses across all verticals – have built an entire ecosystem around the Connected Car, creating new customer touch points and revenue streams. In his session at @ThingsExpo, Macario Namie, Head of IoT Strategy at Cisco Jasper, will share real-world examples of how IoT transforms the car from a static p...
Sep. 30, 2016 12:00 AM EDT Reads: 1,681