Join our Waitlist for Expert Advice!

NFL, MLB to Supreme Court: If Aereo Wins You'll Have to Watch Sports on Cable The leagues said they'll take their programming elsewhere if the live TV internet streaming service is allowed to continue its operations.

By Benjamin Kabin

Opinions expressed by Entrepreneur contributors are their own.

For digital TV startup Aereo, the road to growth has been a difficult one. And it's not getting any easier.

Actually, the four major broadcasters that are suing Aereo over the startup's ability to provide digital streams of broadcast signals have a lot to lose, too. Many programmers who provide valuable primetime content have already said they'll move their shows to paid cable networks if Aereo prevails in court.

Now, Major League Baseball and the National Football League seem to be of the same mind.

In a document called a "friend of the court brief" which has been submitted to the Supreme Court, the leagues argue that what Aereo does is a violation of their "exclusive retransmission licensing rights."

"Those stations will become less attractive mediums for distributing copyrighted content," the brief says. "The option for copyright holders will be to move that content to paid cable networks (such as ESPN and TNT) where Aereo-like services cannot hijack and exploit their programming without authorization."

Related: Digital TV Startup Aereo May Wind Up in the Supreme Court

The four broadcasters that are suing Aereo are ABC, CBS Broadcasting Inc., NBCUniversal and Fox Television Studios.

In order to carry major league sports, cable and satellite providers pay $300 million in "compulsory" licensing fees, about $100 million of which goes to the leagues.

If Aereo wins, it's still not clear how quickly the NFL and MLB could yank their programming.

Aereo, a service that allows users to stream live TV over the internet for a small monthly fee, has been embroiled in a legal battle with the four major broadcasters that's gone all the way to the Supreme Court.

The broadcasters argue that Aereo is stealing copyrighted content. But Aereo, which does not pay the broadcasters, argues that it isn't doing anything that individuals couldn't do themselves with their own antennas.

In several other cases where litigation is pending, courts have denied broadcasters' requests to make Aereo cease its operations until a decision is reached.

Related: 7 Technologies That Are Disrupting the Cable TV Business

Benjamin Kabin

Journalist

Benjamin Kabin is a Brooklyn-based technology journalist who specializes in security, startups, venture capital and social media.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business News

You Have One Month Left to Buy a House, According to Barbara Corcoran. Here's Why.

"If you are planning on waiting a year and seeing where interest rates go, you are out of your mind," Corcoran said.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business Solutions

Cut Costs, Not Features with This Microsoft Bundle Deal

You get Office, Windows, Project, and Visio for $72.

Franchise

The McRib Is Back, But Only at Select McDonald's — Here's Where to Find It

This scarcity is nothing new. In 2022, McDonald's announced a "Farewell Tour" for the McRib, suggesting that it might be the last time customers could get their hands on it.

Side Hustle

I Made $14,000 in 1 Week With a Spontaneous Halloween Costume Side Hustle — Here's How

Sabba Keynejad was in art school when he started to refine his entrepreneurial skills.