Aereo Pushes Public-Interest Case With Free Internet TV Offer

After legal win, over-the-top startup provides New Yorkers one hour free access per day and expands pricing options

By Todd Spangler, Multichannel News -- Broadcasting & Cable, 8/2/2012 12:45:05 PM

Aereo, fresh off a legal victory over major TV broadcasters, is offering consumers in its initial New York City market free streaming access to 28 channels for a continuous one-hour period every day and has introduced new pricing plans starting at $1 per day.

The new free option and pricing structure from the startup, whose backers include IAC's Barry Diller, comes two weeks after a federal district court judge denied a motion for a preliminary injunction against Aereo filed by a group of 17 network broadcasters.

The move appears aimed at showing Aereo serves the public interest by offering more consumer options, including free TV, according to BTIG Research senior analyst Rich Greenfield.

In her July 11 ruling, Judge Alison Nathan of the U.S. District Court for the Southern District of New York noted that "Aereo is a business and does not provide ‘free' access to broadcast television" in considering whether there was a public interest rationale for rejecting the injunction sought by broadcasters. Judge Nathan's decision relied on a previous appeals court ruling that Cablevision Systems' RS-DVR service did not violate copyright laws.

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