Aereo loses copyright fight at Supreme Court

The U.S. Supreme Court ruled Wednesday that online TV service Aereo, backed by media mogul Barry Diller, violates copyright law by using tiny antennas to provide subscribers with broadcast network content via the Internet.

Aereo is a subscription service that allows customers to watch broadcast TV shows using internet-connected services. The company, currently in 11 markets, uses dime-sized antennas to capture over-the-air local TV broadcasts and feed them to users via the Internet. Subscribers pay an $8 monthly fee for the service. For an extra $4, users can get 20 hours of DVR storage, or for $12/month, 60 hours of DVR storage.

Aereo CEO and founder Chet Kanojia said in a statement that the decision was "a massive setback for the American consumer."

"We've said all along that we worked diligently to create a technology that complies with the law, but today's decision clearly states that how the technology works does not matter. This sends a chilling message to the technology industry," Kanojia said. "We are disappointed in the outcome, but our work is not done. We will continue to fight for our consumers and fight to create innovative technologies that have a meaningful and positive impact on our world."

Unless Aereo can figure out how paying broadcast copyright fees fits into its business model, the service will probably have to shut its doors.

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