The future for Aereo after its U.S. Supreme Court defeat (CD June 26 p1) isn’t clear, but it’s not likely to end up being bought by broadcasters or content companies, several broadcast officials and industry analysts told us Thursday. Aereo CEO Chet Kanojia has said in media reports that the company’s technology is valuable. NAB President Gordon Smith told us in an interview Wednesday (see separate report below) that broadcasters could eventually seek to do business with Aereo. But Aereo’s likely not an attractive acquisition for broadcasters with its business model seemingly destroyed by Wednesday’s 6-3 decision, said BIA Kelsey Chief Economist Mark Fratrik: “Aereo doesn’t really have a lot to offer.” Aereo did not comment.
CEA President Gary Shapiro views the just-completed Supreme Court battle between Aereo and the TV networks as an epic David vs. Goliath fight that David lost amid a big public relations onslaught from the content and broadcast industries, he told us Thursday in an email.
The TV incentive auction is “absolutely not a train wreck,” said FCC Commissioner Mignon Clyburn Thursday during an event on the Future of Mobile, sponsored by AT&T, Politico and TechNet. Clyburn also said she welcomes IP transition experiments in places like Carbon Hill, Alabama (http://soc.att.com/1yRbmYy).
The low-power FM community is gearing up for an upcoming FCC public notice identifying mutually exclusive (MX) groups among the pool of applicants that filed for new LPFM construction permits during the 2013 filing window, community radio organizations said. Petitions for reconsideration also are pending concerning dismissed applications that were the focus of a large number of objections, an FCC official said. The Media Bureau has said there was an unprecedented number of objections to many applications (CD June 16 p10).
FCC Chairman Tom Wheeler’s draft E-rate order being circulated calls for setting aside $1 billion annually for each of the next five years for broadband or Wi-Fi connectivity within schools and libraries, while also phasing out funding for traditional voice services, two FCC officials told us Wednesday. The order circulated Friday for the July 11 FCC meeting (CD June 23 p4). Wheeler doesn’t yet have the votes for the draft (CD June 25 p1).
Broadcasters won their case against streaming TV service Aereo in the Supreme Court Wednesday, in a 6 to 3 decision (http://1.usa.gov/1lbK8Si). That makes it very difficult for Aereo to continue operating, several broadcast and copyright attorneys told us. Justice Stephen Breyer wrote the majority opinion, ruling that despite Aereo’s unique technology, the company’s end product was little different from that of a cable company and should be subject to laws intended to impose copyright restrictions on cable companies. Oral argument was in April (CD April 23 p1).
The establishment of terrestrial performance royalties should be included in music licensing overhaul, said some witnesses and several House Judiciary IP Subcommittee members at a hearing Wednesday (http://1.usa.gov/1pIUuAG). It was the committee’s second hearing this month on music licensing (CD June 11 p12). NAB Joint Board Chairman Charles Warfield, YMF Media senior adviser testifying on behalf of NAB, and Ed Christian, Radio Music License Committee (RMLC) chairman, said they opposed the terrestrial performance right. Consent decrees were also a point of contention among the witnesses.
FCC Commissioner Mike O'Rielly lamented that a cost-benefit analysis is lacking from the record on net neutrality and that the commission’s new rules on TV station joint sales agreements have negatively affected consumers. He spoke at a Phoenix Center event Tuesday night.
Expect the Senate Commerce Committee to mark up its Satellite Television Extension and Localism Act (STELA) reauthorization bill in July, and if the stars align, to join the House effort to overhaul the Communications Act next year, ranking member John Thune, R-S.D., said Wednesday at a Free State Foundation event on Capitol Hill. Thune and Committee Chairman Jay Rockefeller, D-W.Va., are cobbling together a bipartisan bill that may attempt some video marketplace overhauls, they told us last week (CD June 18 p4).
FCC Wireless Bureau Chief Roger Sherman Wednesday warned railroads they need to work with the FCC on positive train control (PTC) and not just level criticisms, speaking at an FCC workshop on the topic. The Association of American Railroads (AAR), which represents the seven Class I freight railroads operating in the U.S, has been especially critical of FCC efforts on PTC.