Aereo
The business, the turning points, and the decisions behind them.
01 / WHAT IT BUILT
What the company did
Aereo was a subscription online TV service backed by Barry Diller's IAC. It used thousands of dime-sized antennas to capture over-the-air broadcast TV signals and stream them to subscribers' computers, phones, and tablets, with a cloud-based DVR, for $8 per month. Launched in New York in 2012, it expanded to 11 U.S. cities and raised about $97 million in funding.
02 / Aereo FAILURE REASONS
Failure reasons
Aereo was destroyed by a Supreme Court defeat: on June 25, 2014, the Court ruled 6-3 that Aereo's service infringed broadcasters' copyrights, rejecting its argument that one-to-one antenna streams were private. A follow-on attempt to operate under a compulsory cable license was refused by the district court, and with its business model illegal, Aereo suspended service days after the ruling and filed for Chapter 11 bankruptcy on November 21, 2014.
03 / EVENT HISTORY
Events in the structured record
- Launch
Aereo launches in New York, offering subscribers streaming of over-the-air TV via individual tiny antennas plus cloud DVR recording for $8 per month, backed by Barry Diller and IAC.
- Supreme Court defeat
In April 2014, the U.S. Supreme Court hears the broadcasters' copyright case against Aereo; on June 25, 2014, it rules 6-3 that Aereo infringes copyright. On June 28, 2014, Aereo suspends operations and refunds subscribers' last month of payment.
- Bankruptcy
On November 21, 2014, Aereo files for Chapter 11 bankruptcy in the Southern District of New York after a court refuses its request for a compulsory cable license.
- Asset auction
In February 2015, Aereo's remaining assets are auctioned for less than $2 million in total; DVR company TiVo acquires key assets for $1 million.
04 / CONTEMPORARY REBUILD ASSESSMENT
Difficulty of rebuilding this project today
Material for this section is being gathered and checked. It will appear here once ready.
Overall assessment: Not completed
05 / CAUSAL CHAIN
How the factors connect
- 01
On June 28, 2014, three days after the Supreme Court's 6-3 copyright ruling, Aereo suspended its streaming and DVR service and refunded subscribers their last month of payment.
- 02
On November 21, 2014, Aereo filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York.
- 03
In February 2015, its remaining assets were auctioned for less than $2 million; TiVo acquired key assets for $1 million.