Follow the money and discover an unstated reason the Hollywood unions weighed in with briefs opposing the new service.
Several weeks ago, Fox, PBS and several other companies were hit with a 2-1
federal
court of appeals ruling rebuffing their attempt to shut down Aereo, a new
service backed by
Barry Diller. Last
week, they filed a
petition
for a rehearing en banc, in which
all thirteen judges of the New York based court would rehear the case and
potentially reverse the ruling, resulting in the preliminary injunction that
the networks seek while the matter goes to trial.
Interestingly the Hollywood unions – DGA, IATSE, SAG-AFTRA and WGA – signed
on to an
amicus
brief supporting that petition, as they
had
also done when the original appeal was heard. But why do the guilds care?
As a reminder,
Aereo is a service that allows users to watch and record
local TV for $8/month without a cable subscription. The service is available in
New York and, soon,
in
Boston. It’s drawn the ire of broadcast networks because it would
facilitate cord-cutting, reducing revenue to networks.
As a result, News Corp. president and COO
Chase Carey has
threatened to make Fox cable-only if Aereo prevails in court. There are
potential
downsides to this, and some analysts are
skeptical
that Fox would make the move, but the threat can’t be dismissed out of hand.
One reason the guilds are concerned ...
Details:
The Hollywood Reporter.
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