General

In the latest battle between traditional content providers and the Internet, a streaming video startup has quickly hit a major roadblock. As paidContent’s Jeff Roberts reports:

Two weeks ago, media mogul Barry Diller announced an ambitious cloud-based TV service that streams over-the-air channels to internet devices for $12 a month. This week, broadcasters offered their opinion in the form of a lawsuit that seeks to shut off the service which is set to go live on March 14.

Fox, Univision and PBS filed a complaint in Manhattan federal court that claims Aereo infringes their copyright and that the upstart’s technology fails to qualify for a legal loophole.

Aereo works by taking over the air signals that are free to everyone and retransmitting them to individual “dime-sized antennas” that let consumers watch the content on internet devices.

With more and more people viewing video online — and cutting their cable cords in the process — there are sure to be a lot more scrimmages like this in the future.