The start-up found itself making big headlines when it announced it would allow paying customers to stream broadcast TV content to mobile devices, or other Internet-connected equipment. Aereo will not be paying content providers or broadcasters any fees for the service.
What makes Aereo very interesting is the use of remote antenna clusters. In the United States, every citizen has the right to use an antenna to pick up broadcast TV signals without paying a subscription fee.
While Aereo's service is delivered over the Internet, it actually is powered by a remote antenna cluster on a roof-top in Brooklyn. Each paying customer has control over one of these mini-antennas (see image).
Aereo believes that this is no different than using an antenna you carry around or put on your rooftop. Broadcasters however see Aereo as a different kind of service, and have demanded in a U.S. court that it pays fees.
As of October 2012, the Aereo legal case is on-going, and its outcome will have an effect one way or another on the industry.
