Aereo, the service that captures free over-the-air TV broadcasts and streams them online for $12 a month, has come under fire from just about every major TV content provider, from local and national networks to the National Association of Broadcasters. This Wednesday, several of them filed statements seeking a preliminary injunction that would stop Aereo from operating while it deals with the suits against it. So what arguments are NBCUniversal, CBS, Fox, a local ABC affiliate, and others making against Aereo?
The biggest complaint about Aereo’s service is, unsurprisingly, that it will lead to a kind of tragedy of the commons. If Aereo doesn’t pay for service, critics say, why would anyone else want to? “It makes little economic sense for cable systems and satellite broadcasters to continue to pay for NBCU content on a per-subscriber basis,” says Matt Bond of NBCUniversal, “when, with a relatively modest investment, they can simply modify their operations to mirror Aereo’s ‘individual antenna’ scheme and retransmit, for free, over-the-air local broadcast programming.” In other words, they could use the same setup as Aereo, capturing broadcasts over a “tiny antenna” for each customer, and get around paying to include local channels in their packages.



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