Aereo, the online television streaming service that thought it could get away with not paying licensing fees, has filed for Chapter 11 bankruptcy protection.
The service, which was essentially declared illegal by the Supreme Court in June, announced its next plans in a letter by CEO Chet Kanojia.
“Chapter 11 will permit Aereo to maximize the value of its business and assets without the extensive cost and distraction of defending drawn out litigation in several courts,” Kanojia wrote. “We have traveled a long and challenging road. We stayed true to our mission and we believe that we have played a significant part in pushing the conversation forward, helping force positive change in the industry for consumers.”
Aereo was a service that took free over-the-air broadcasts and streamed them to subscribers, who paid as little as $8 a month. The company, which counted billionaire Barry Diller as one of its investors, kept its prices so low because it did not pay the same licensing fees that cable and satellite companies do.
In court, Aereo argued that its service was just another tool for consumers to gain access to over-the-air broadcasts, but ABC, CBS, Fox and NBC didn’t buy that argument, especially since Aereo offered DVR storage.
After the Supreme Court ruled 6-3 in favor of the networks, the company tried everything to stay alive, even filing a court document to say it is a cable system and would thereby follow the same rules as cable. But this was another argument that few bought and the U.S. Copyright Office said it will not consider it a “cable service.”
Its latest move to stay alive came in August, when it asked for an emergency ruling from a judge to remain alive as a “cable company.” This actually angered the judge overseeing Aereo’s case, since it filed the emergency motion without talking to her first.