Bankrupt Aereo will auction its antennas and other assets to broadcasters next year. The New York startup created thousands of tiny TV antennas no bigger than a fingertip, and users in New York City and a handful of other big cities could rent a connection to stream and record broadcast TV on their mobile devices and personal computers.
Major broadcasters sued Aereo for copyright violation, and now those same broadcasters will have a chance to buy Aereo’s assets. According to Reuters, Aereo has reached a sales process agreement with CBS, NBC, ABC and Fox.
Aereo tried to position itself as an equipment provider, and said that viewers were paying rental fees to use its equipment. Last year, the United States Court of Appeals for the Second Circuit said that Aereo’s technology is basically like a DVR from the user’s perspective, and therefore does not break the law. The case went to the Supreme Court.
In June, the Supreme Court Justices voted 6-3 against Aereo and in favor of the broadcast and cable networks that were opposing the company. They found that by recording broadcast television shows and reselling them to viewers, Aereo was violating the Copyright Act. Unlike cable and satellite TV providers, Aereo did not pay the broadcasters for the right to deliver their programming to viewers.
Aereo, which was backed by media mogul Barry Diller, former CEO of Paramount Pictures and Fox, had reportedly talked to both AT&T and Dish Network about potential partnerships.
