UPDATE: Big Names Eye Internet-TV Startup Aereo Amid Legal Troubles (NFLX) (T) (AMZN)
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(Updated - April 1, 2013 11:52 AM EDT)
Reports out Monday have names like AT&T (NYSE: T), DISH Network (Nasdaq: DISH), and others in potential partnership talks wtih IAC/InterActive's (Nasdaq: IACI) Barry Diller-backed Aereo, an Internet television startup. The discussions aren't said to have advanced beyond anything besides preliminary interest, Bloomberg noted today, citing people familiar with the situation.
Aereo was sued by content providers like CBS Corp (NYSE: CBS), News Corp (Nasdaq: NWSA), Walt Disney (NYSE: DIS), and others last year over allegations that what Aereo did was basically steal over-the-air signals, letting users record the content in the process. A preliminary injunction request last July was turned down in New York.
DirecTV (Nasdaq: DTV) was also said to have weighed a potential partnership, but opted out after looking into Aereo's legal situation. Other pay-television providers haven't commented on Aereo's legal standing.
Aereo has averred in the past that it service is made to compliment, rather than compete, with the likes of Amazon (Nasdaq: AMZN) Instant Video and Netflix (Nasdaq: NFLX) services. AT&T, the WSJ notes, might bundle Aereo services with a broadband package.
Whether a positive or negative for Netflix, investors are exercising some caution today. Shares are down over 2 percent with lighter volume.
UPDATE - According to AllThingsD, the Second Circuit appeals court upheld the denial of preliminary injunction verdict issued last summer. Voting was 2-1 in favor of Aereo
For the legal document on the case, click here.
Reports out Monday have names like AT&T (NYSE: T), DISH Network (Nasdaq: DISH), and others in potential partnership talks wtih IAC/InterActive's (Nasdaq: IACI) Barry Diller-backed Aereo, an Internet television startup. The discussions aren't said to have advanced beyond anything besides preliminary interest, Bloomberg noted today, citing people familiar with the situation.
Aereo was sued by content providers like CBS Corp (NYSE: CBS), News Corp (Nasdaq: NWSA), Walt Disney (NYSE: DIS), and others last year over allegations that what Aereo did was basically steal over-the-air signals, letting users record the content in the process. A preliminary injunction request last July was turned down in New York.
DirecTV (Nasdaq: DTV) was also said to have weighed a potential partnership, but opted out after looking into Aereo's legal situation. Other pay-television providers haven't commented on Aereo's legal standing.
Aereo has averred in the past that it service is made to compliment, rather than compete, with the likes of Amazon (Nasdaq: AMZN) Instant Video and Netflix (Nasdaq: NFLX) services. AT&T, the WSJ notes, might bundle Aereo services with a broadband package.
Whether a positive or negative for Netflix, investors are exercising some caution today. Shares are down over 2 percent with lighter volume.
UPDATE - According to AllThingsD, the Second Circuit appeals court upheld the denial of preliminary injunction verdict issued last summer. Voting was 2-1 in favor of Aereo
For the legal document on the case, click here.
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