The debt rating company says that several broadcasters who have taken Aereo to court probably will defeat its new effort to sell customers a streaming service for over-the-air signals. The courts will agree with the plaintiffs who say that the effort violates their copyrights. Aereo says that it’s just offering remote access to the kinds of services consumers can already get at home using an antenna, DVR, and a Slingbox. If Aereo were to prevail, Moody’s Investors Service says, then it would be a serious blow to some of the media business’ largest companies. It could undermine broadcasters’ ability to demand retransmission consent payments from pay TV providers. (Why should they pay if Aereo can retransmit local station signals for free?) And if lots of people liked Aereo’s $12 a month service — which also offers the ability to record up to 40 hours of programming and replay it on demand, much like a DVR — then “it would also jeopardize (broadcasters’) advertising revenue.” Ratings services including Nielsen “do not currently have the capability of capturing online viewing accurately.” Cable has less to fear from Aereo: It would mostly appeal to viewers “who already don’t have cable” or who want to watch TV on mobile devices. Although it could compete with cable and satellite TV Everywhere initiatives, Aereo might not provide a big incentive for consumers to cancel their pay TV service. The ranks of cost-cutters “primarily consist of a young demographic that asn’t yet transitioned into household formation where TV viewing is more ubiquitous, or those who are doing without cable as result of tough economic times.” Aereo launched this week in New York City, although its case is still before the U.S. District Court.
Aereo Is “Unlikely” To Survive Broadcaster Suit: Moody's
What's Hot on Deadline
Sony Pictures Confirms Quentin Tarantino Deal; Margot Robbie, Tom Cruise, Brad Pitt, Leonardo DiCaprio Circling
Actress Accuses 'Girls' EP Murray Miller Of Sexual Assault; Showrunners Lena Dunham & Jenni Konner Defend Him - Update
Ryan Eggold, Who Played Fan Favorite Tom Keen In 'The Blacklist,' Joins Spike Lee's 'Black Klansman'
Latest TV News
- Malcolm Young Dies: AC/DC Guitarist Rocked Charts & TV-Film Soundtracks
- Bill Maher: Don’t Lump Al Franken With Weinstein, Spacey & Donald Trump
- Wendy Pepper Dies: Contestant On First Season Of ‘Project Runway’ Was 53
- Vice Forms All-Female Advisory In Wake Of Exec’s Conduct Suspension
- ‘True Detective’: Carmen Ejogo To Star In Season 3 Of HBO Anthology Series
- AT&T-Time Warner Merger Antitrust Review Casting Pall Over Fox Talks