The End of Broadcast TV?

This is a MediaNote Classic that was originally presented in Spring 2014. The Supreme Court case involving Aereo has been decided, but the issues surrounding the future of television continue to evolve.



Television--which people used to get through the air for free--has increasingly become dependent on "retransmission fees." These are costs paid by cable and satellite companies to networks and local TV stations which help to pay for programming. Retransmission fees are passed along to the viewer in their cable and satellite bills. The remaining small percentage of the population that continue to get TV through an antenna on their TV set continue to get their TV for free.

But a new startup, Aereo, may completely upend this system of TV economics. Aereo, which recently began its service in the New York area, charges subscribers $8 a month for HD broadcasts of local, over-the-air stations, which can be played on a smartphone, tablet or computer. The shows are then stored for the consumer on the internet (the cloud). The TV broadcasters insist that Aereo must pay a retransmission fee, as cable and satellite companies do. Aereo claims there service is simply another form of broadcast antenna and VCR, and therefore is not subject to retransmission fees.

The case is now being argued before the U.S. Supreme Court. If Aereo wins, Fox and Univision have pledged to end over-the-air broadcasts. Major League Baseball and the NFL have pledged to do the same. Some believe these are empty threats. But it could also mean the beginning of the end for free over-the-air television. NPR reports.

Questions...

•Does it matter if broadcast TV goes away? Why or why not?

•Is Aereo more like a cable company, or more like a private individual using an antenna and a VCR?

•How do you imagine the television world changing over the next 10 years?

•Is television becoming more important or less important in your life?