Aereo wins backing from FCC’s Wheeler in battle for survival

Written By Unknown on Rabu, 29 Oktober 2014 | 23.16

Barry Diller's Aereo has won over a key backer in its bid to come back as a cable service.

A proposal circulated by Tom Wheeler, chairman of the Federal Communications Commission Chairman, would treat Aereo and other Internet-based video providers the same as traditional cable and satellite-TV companies.

If approved, the change means broadcasters couldn't outright refuse to license their local TV signals to Aereo and would have to negotiate with the upstart service.

Aereo, which used thousands of dime-sized antennas to redistribute local stations without paying for the signal, halted service after losing a Supreme Court battle to the major broadcasters in June.

After that defeat, Aereo changed tactics and sought to be defined as a cable-TV service so that it could negotiate a "compulsory license." But a federal judge nixed that effort as well, ruling it wasn't a cable service under the existing rules.

Wheeler, who outlined his proposal in a blog post on Tuesday, agrees that Aero should be on par with cable and satellite-TV services as a way to encourage competition.

He wants to change the rules to accommodate it and other "a la carte" services that allow consumers to cherry pick channels rather than having to buy a monthly programming bundle.

"Aereo recently visited the Commission to make exactly this point — that updating the definition of an MVPD will provide consumers with new choices," Wheeler wrote. "And perhaps consumers will not be forced to pay for channels they never watch."

Aereo CEO Chet Kanojia applauded Wheeler's proposal, saying the laws haven't kept pace with changing viewing habits and a new crop of online video providers.

"By clarifying these rules, the FCC is taking a real and meaningful step forward for competition in the video market," Kanojia said in a statement. "The FCC recognizes that when competition flourishes, consumers win."


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