Aereo CEO Chet Kanojia sent an email out to his customers today saying that Aereo's service has been "paused" after what they called a "massive setback." The Supreme Court decided this week that Aereo's service violated copyright law. Leo says a pause is an understatement and he doesn't think Aereo can come back from this.
Leo says that 'must carry' rules required cable companies pay local broadcasters to carry their services and rebroadcast them. Aereo exploited a loophole that allowed them to leach the signals from the air and then charge customers to watch them. Aereo claims that they are just renting the antenna and the DVR space. But Leo says that the whole purpose is to be a cable service without having to pay the networks. Leo goes on to say that if Aereo agreed to pay retransmission fees, they could stay in business. And that could be why they're just "pausing."