Executives of CBS and Univision are considering moving their over-the-air television networks to cable in response to the growth of Aereo. This revelation comes very soon after News Corp. COO Chase Carey also said Fox could be destined for cable if Aereo gets its way. Nothing is final at the moment, but these threats help to show just how far broadcasters will go to get around Aereo’s service.
According to The New York Times. CBS chief executive Leslie Moonves said CBS would only become a cable network in New York and Connecticut. Moonves also expressed what he felt are the chances of such a move occurring.
“Frankly, we don’t think it will get to that point,” Moonves said.
Fox, CBS and Univision are against Aereo because it rebroadcasts over-the-air broadcast signals and rebroadcasts them over the internet to customers for a monthly fee. Aereo doesn’t give the networks a cut of the money it makes from doing this. The networks have tried to force Aereo to go away through litigation, but has been unsuccessful so far. Not only has Aereo continued to operate, it has also begun to expand beyond the New York City area.
If Aereo isn’t stopped, similar companies could come into existence. The notion of Aereo competition scares the heck out of television networks. In the end, the networks will need to get with the times, or risk alienating a lot of customers.
Source [The New York Times]