Aereo's Plan B: Fine, We're a Cable Provider The streaming TV startup that lost against big broadcasters in the Supreme Court is still not giving up. It's giving in. Well, sort of. Here's how.

By Kim Lachance Shandrow

Opinions expressed by Entrepreneur contributors are their own.

So much for not having a Plan B.

Aereo, the scrappy streaming TV startup that went up against big broadcast TV in the U.S. Supreme Court two weeks ago and miserably lost, now fancies itself a cable provider. In the company's latest fight for survival, it's abandoning its long-held claim that it's merely an equipment provider.

In a letter filed yesterday in U.S. District Court in New York, the company pulled a total 180, arguing that, now that the Supreme Court has deemed its service "for all practical purposes a traditional cable system," it should be allowed to operate like one.

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

If Aereo wins this time, it would have to suck it up and pay the very local broadcast TV licensing fees it skirted since day one. Not exactly ideal, but better than completely going under.

Maybe Aereo didn't convince enough of its subscribers to fight for what it says is their right to use a cloud-based antenna to snatch broadcast programming out of the air, perhaps not as quickly as it had hoped to.

"The Supreme Court's holding that Aereo is a cable system under the Copyright Act is significant because, as a cable system, Aereo is now entitled to the benefits of the copyright statutory license pursuant to the Copyright Act," reads Aereo's letter to Judge Alison Nathan, who previously ruled in the company's favor. "Aereo is proceeding to file the necessary statements of account and royalty fees."

Related: 7 Technologies That Are Distrupting the Cable TV Business

Of course the broadcast giants aren't going for it. No surprise there.

"Whatever Aereo may say about its rationale for raising it now, it is astonishing for Aereo to contend the Supreme Court's decision automatically transformed Aereo into a "cable system' under the law," the broadcasters said in a letter jointly filed with Aereo to the court.

In a statement titled "Our Path Forward" emailed to the media and Aereo subscribers today, Kanojia reiterated that he's still not throwing in the towel.

"This has been a challenging journey for our team, but your support has continued to lift and propel us forward," he said. "We remain committed to building great technologies that create real, meaningful alternatives for consumers."

Related: Roku Founder: Say Goodbye to Cable Boxes and Hello to TV Apps

So what happens if Aereo's cable classification Plan B doesn't pan out? Do Expect a Plan C, perhaps one that could involve letting subscribers playback TV programs after they air. Don't expect Kanojia to shout from the media mountaintops this time that he doesn't have a backup plan. Make that a backup, backup plan, as TechCrunch's Cat Zakrzewski put it.

Before it's devastating Supreme Court loss, the New York City upstart ran a small army of tiny antennas in 11 U.S. cities that collected TV signals. An Aereo customer essentially leased the use of an antenna and could then watch and record live broadcast television online via a cloud-based DVR for $8 to $12 per month.

Aereo paused it service on June 28, though it hasn't officially shut down yet. Meanwhile, as pointed out in its letter to Judge Nathan, the upstart continues to sputter along, earning nothing and "continuing to incur enormous costs such as employee salaries, equipment and lease payments, and vendor payments."

Here is the complete letter to the lower court by both parties.

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

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

Side Hustle

This 30-Year-Old's $6,000-a-Month Side Hustle Started Making Money 'Immediately' — But He's Not Quitting His Day Job

Derrick Mathy works in orthopedic surgical device sales and is on a mission to bring people together in real life.

Growing a Business

Obsessing Over Your Product Can Hurt Your Business — Here's What You Need to Focus on to Fuel Sustainable Growth

Forget about perfecting your product. Here's how sales-led startups thrive in any market.

Growing a Business

How This Founder Is Sharing the Immigrant Story Through Food – And Her Best Advice for Entrepreneurs

Immigrant Food is transforming the culinary world by celebrating global flavors and advocating for immigrant contributions in America.

Business News

'Unprecedented in Our 53-Year History': Southwest Airlines Announces Its First Mass Layoffs Ever

The airline is eliminating 15% of its corporate workforce, including many in senior leadership positions.

Business News

Elon Musk's xAI Claims Its New Grok 3 AI Is Better Than ChatGPT and DeepSeek: 'Seeing the Beginnings of Creativity'

xAI debuted the new AI on Monday, claiming it has 10 times the computational power of Grok 2.

Thought Leaders

24 Signs You're Destined to Become a Millionaire

Start making money at a young age. Warren Buffett sold packets of gum to his neighbors at age six!