Syncbak is a technology endorsed by all the networks that would allow streaming on the internet that only reaches geographically appropriate customers. CBS just invested in the company. So locals and networks are moving to intenet. Will choices be better with Aereo offering competition?
The networks threats to drop OTA looks hollow, still much money in OTA advertising:
“In 2012, broadcast advertising revenue was $27.4 billion, divided among just nine networks, according to the financial website motleyfool.com. For the same period, cable advertising was $24.3 billion, divided among 76 networks”
The retrans fees are increasingly important, but they still don’t compare to advertising:
“From 2012-16, the broadcast networks currently stand to make $9.2 billion in retrans fees but $91.8 billion in advertising revenue….
There's also the unanswered question of whether jumping off the over-the-air system in hopes of raising the $1 sub rate to a $3 sub rate is really a better financial move than just competing against Aereo, which offers its service for $8 to $12 a month. The networks could presumably beat that price plus throw in a wider range of on-demand programming “
This guy sees it differently, broadcast TV is dying, and along with it the Aereo model:
“So while Netflix is busy working hard on becoming the next type of TV station, Aereo is working on becoming the next type of cable company. These days, the battle for your TV set is raging on and a variety of new models are emerging. The only question that remains is whether the incumbents will adapt or die.”