Aereo Defeat Sets Up Bigger, Broader Fight for TV
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TV networks’ apparently total victory over Aereo at the Supreme Court on Wednesday isn’t necessarily a long-term win for the broadcasters, observers and analysts said as the implications of the ruling settled in.
By solidifying broadcasters’ ability to demand retransmission fees from any new technology that seeks to carry their signals, the Court may have also reminded Congress about an increasing complaint from constituents: out-of-control cable fees.
“While regulators and Congress may wish to see a vibrant broadcasting sector, the aggressiveness with which CBS, Fox and others stated their expectations for retransmission consent revenue expansion over the course of the Aereo dispute may yet serve to undermine broadcasters’ voice in Washington, especially as cable subscription rates continue to rise,” Pivotal Research analyst Brian Wieser wrote in a note. “At some point, today’s rules will change, and this change could be harmful to broadcasters. A win for Aereo today could have provided some room for broadcasters to ask Congress for forms of relief in the future.”
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