Aereo has been super savvy in grabbing headlines of late. If you’re not caught up on the story so far, the start-up TV company has expanded to a few new markets, won another round in court against broadcasters, and left Fox, CBS and others frothing at the mouth and threatening to move free programming over to a paid service model.
The thing about Aereo is, while the conceptual disruption is huge, the impact of the actual service is still vanishingly small.
- Aereo is a Big Deal because broadcasters make bundles of cash from retransmission agreements, and the Aereo model creates a workaround for any service provider that wants to distribute free broadcast channels without paying a licensing fee.
- Aereo is a Big Deal because, as I wrote recently for Light Reading, it opens up the debate over whether there will continue to be a role for free TV in the Internet era.
- Aereo is Not a Big Deal because the service itself has serious limitations. In addition to being available only in a few markets, the service is getting poor marks for video quality.
- Aereo is Not a Big Deal because it is only one of several disruptors on the television scene. Start-ups and stalwarts alike are experimenting with new services and pricing models – from Simple.TV, Skitter, and NimbleTV to Dish, Verizon, and Time Warner Cable.