Aereo Faces Off Against Broadcast Giants in Supreme Court Today

The controversial streaming TV startup has battled broadcast goliaths before -- and won both times. Will it prevail again? Either way, Aereo's fate could forever change the way we watch TV.

learn more about Kim Lachance Shandrow

By Kim Lachance Shandrow

Opinions expressed by Entrepreneur contributors are their own.

Aereo's biggest day in court has finally arrived and it's win or die.

Opening arguments in American Broadcasting Companies, Inc. v. Aereo, Inc, a landmark case that could forever alter how U.S. citizens watch TV -- and how American cloud storage companies do business -- kick off at the U.S. Supreme Court today.

After beating them twice already in lower courts, Aereo is once again facing off against the royalty-hungry broadcast TV goliaths dead-set on shutting the small, literally disruptive streaming TV newcomer down for good.

Related: Aereo Founder: If We Lose, 'We Have No Plan B'

TV's Big Four (ABC, CBS, NBC and Fox), along with Comcast Corp. and Walt Disney Co., claim the New York City-based startup is violating U.S. copyright law by streaming their copyrighted content to its customers without paying a penny for it. According to them, Aereo is outright stealing and illegally distributing their free-to-air programming on a massive scale.

Aereo's CEO Chet Kanojia says that's just not so, that his cloud-based streaming service "falls squarely within the law" and that this case isn't even about copyright law.

"It's a case about trying to protect this idea of an integrated bundle that the media companies sell," he told Entrepreneur.com earlier this month. To him, the copyright infringement accusation is little more than a red herring.

Related: NFL, MLB to Supreme Court: If Aereo Wins, You'll Have to Watch Sports on Cable

Kanojia's controversial 2-year-old service delivers broadcasters' free, local over-the-air content to its subscribers via a sophisticated tiny antenna and DVR system. Its game-changing technology allows subscribers to watch and record live broadcast TV on their smartphones, tablets and internet-connected TVs (for $8 to $12 per month).

Nothing about that is illegal, Konjia said, because "every consumer has the right to an antenna" and "every consumer has the right to make a recording for themselves of free-to-air television."

Cloud-based storage companies like Dropbox, Amazon and Google will be watching the case very closely. If the court rules against Aereo, it could mean that firms like these that do business in the cloud are potentially violating copyright law by providing their users with copyrighted content, even if the user owns it.

Related: Aereo to Supreme Court: 'Our Service Falls Squarely Within the Law'

Kanojia said he has "no choice" but to be confident Aereo will again prevail against corporate network TV's old guard, this time in our country's highest court, just as it did once in federal district court and twice in the Second Court of Appeals.

If Aereo doesn't win, Kanojia has no Plan B. If it does, media mammoths (including major sports organizations like the NFL and MLB) have said they would yank their free content from the airwaves. They threaten to move their programming to cable channels, which would choke off a major chunk of Aereo's content. Kanojia thinks broadcasters are bluffing, casting their threats off as mere "rhetoric."

Only time, and a highly anticipated Supreme Court final ruling in the case, likely in June, will tell.

Related: Aereo CEO: 'We're on the Side of the Angels'

Kim Lachance Shandrow

Former West Coast Editor

Kim Lachance Shandrow is the former West Coast editor at Entrepreneur.com. Previously, she was a commerce columnist at Los Angeles CityBeat, a news producer at MSNBC and KNBC in Los Angeles and a frequent contributor to the Los Angeles Times. She has also written for Government Technology magazine, LA Yoga magazine, the Lowell Sun newspaper, HealthCentral.com, PsychCentral.com and the former U.S. Surgeon General, Dr. C. Everett Coop. Follow her on Twitter at @Lashandrow. You can also follow her on Facebook here

Related Topics

Editor's Pick

Everyone Wants to Get Close to Their Favorite Artist. Here's the Technology Making It a Reality — But Better.
The Highest-Paid, Highest-Profile People in Every Field Know This Communication Strategy
After Early Rejection From Publishers, This Author Self-Published Her Book and Sold More Than 500,000 Copies. Here's How She Did It.
Having Trouble Speaking Up in Meetings? Try This Strategy.
He Names Brands for Amazon, Meta and Forever 21, and Says This Is the Big Blank Space in the Naming Game
Thought Leaders

The Collapse of Credit Suisse: A Cautionary Tale of Resistance to Hybrid Work

This cautionary tale serves as a reminder for business leaders to adapt to the changing world of work and prioritize their workforce's needs and preferences.

Business News

'Could This Be True?': Blockbuster Might Be Teasing a Surprise Comeback

The company has shuttered all of its locations except for one in Bend, Oregon.

Business News

These Are the Most and Least Affordable Places to Retire in The U.S.

The Northeast and West Coast are the least affordable, while areas in the Mountain State region tend to be ideal for retirees on a budget.

Business News

I'm a Former Google Recruiter. Here's How to Land a Job in Tech — and What Can Blow Your Interview

A former Google recruiter says layoffs may be trendy, but tech workers are always needed. Here's how to land a job at a major tech company.

Growing a Business

The No.1 Most Bankable Skill You Must Have to Succeed in 2023

If you don't foster this skill, you'll fall behind the pack financially and professionally in 2023.