Ryvicker: Aereo is not over yet

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Marci RyvickerMarci Ryvicker, Wells Fargo Senior Analyst, writes that while Aereo has won the  injunction appeal, the war is not over yet. On Monday morning, an Appeals Court denied broadcasters’ request that Aereo be temporarily shut down via an injunction. “We were not surprised by this news and continue to point to the copyright infringement claim as the key to this case. In our view, this is going to be a long-term battle,” she writes. “At the heart of the Aereo case is the broadcasters’ claim that this technology violates the Copyright Act with regard to retransmitting broadcast content. Based on other court cases (i.e. FilmOn and Ivi), the broadcasters believe they will ultimately prevail and that Aereo will be shut down. We believe the biggest issue here has to do with retransmission consent as this service does not compensate broadcasters for their signal or network content. We have heard that Aereo has not been discussed in any retransmission consent negotiations, and we don’t see how traditional players can follow this same business model given the current litigation. We don’t dismiss this case as it could have implications longer term, but we are not surprised by today’s news – and we continue to believe that fundamentals of retransmission consent are intact for the next several years (which is how long this case could play out).”