The stakes can’t get any higher for internet TV service Aereo. One week from now, the two-year-old company will go before the Supreme Court to face off against a group of big broadcasters that want to shut it down. If Aereo loses, its biggest investor says the company is “finished.”
More significantly, the Supreme Court’s decision could alter the current business model of TV, which relies on selling large bundles of channels for ever higher prices. If the Justices side with Aereo, which rents subscribers a remote antenna to watch and record over-the-air stations like NBC, more consumers may become tempted to become “cord cutters” — leaving their TV provider in favor of some combination of internet TV services, including Aereo’s smaller and cheaper bundle of channels.
While Aereo now offers its $8/month service in just a dozen cities, it plans to expand to 50 by next year. And while Aereo reportedly has only 100,000 subscribers in New York, that number would likely…
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