May 01, 2014

TV's they are a-changin'

Shauna Hines
Features Editor

As the number of television channels increases, so does the price. With prices increasing with HD channels and premium channels, and people are looking for alternatives to a $250 a month television bill. This is where Aereo Incorporated comes in. This small startup company offers services in 11 cities by selling dime-sized antennas that pick up local stations and can record programming onto televisions, computers, or mobile devices for as low as $8 a month for 20 hours of storage. This may sound great in theory, but the company’s basis is being challenged in the Supreme Court by broadcasting networks.

Aereo Incorporated logo
The issue being presented to the Supreme Court regards copyright laws, which ABC, CBS, Fox, NBC, Univision, and other networks claim have been violated. The claim is that by not paying copyright fees when airing shows through Aereo’s programming, the company is undermining business. CBS and Fox are even threatening to abandon over-the-air free broadcasting and instead only broadcast on pay cable channels if they lose the case. If Aereo is found to be in violation of these laws, then the company will be declared illegal.

The decision to be given some time in June poses positives and negatives for both sides. If Aereo wins, it will open the door for similar types of programs from new companies and companies such as Time Warner Cable may lose customers if the Aerero expands nationwide. On the flipside, if Aereo loses, major media companies will gain stronger control over broadcasting and Aereo and similar companies will have to abandon their pursuits.

Speaking of increasing prices, those interested or currently subscribing to Netflix should be aware that prices will increase. This continually growing company will be increasing subscription prices for new customers, by a dollar or two a month, globally. Based on Netflix’s letter to shareholders, this price increase will not apply to current Netflix member “for a generous time period.” The price increase will enable Netflix to afford the rising costs of program licensing and to compete with HBO and Showtime in order to provide supreme programming and services for subscribers.