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Broadcasters sue to stop $12 streaming service Aereo

Well, that was quick. Two weeks ago, media mogul Barry Diller announced an ambitious cloud-based TV service that streams over-the-air channels to internet devices for $12 a month. This week, broadcasters offered their opinion in the form of a lawsuit that seeks to shut off the service which is set to go live on March 14.

Fox (NSDQ: NWS), Univision and PBS filed a complaint in Manhattan federal court that claims Aereo infringes their copyright and that the upstart’s technology fails to qualify for a legal loophole.

SEE ALSO: Why The Diller-Backed Aereo Will Need Some Fancy Lawyers

Aereo works by taking over the air signals that are free to everyone and retransmitting them to individual “dime-sized antennas” that let consumers watch the content on internet devices.

Aereo plans to launch its service in Brooklyn and then roll it out across the company to subscribers who will pay $12 a month.

The company’s pitch is: “Live Broadcast TV, meet the Internet. Finally. With Aereo you can now watch live, broadcast television online. On devices you already have. No cable required.”


Image courtesy of Flickr user videocrab

TV will be affected too.