Time Warner Cable Inc (NYSE:TWC) Looking For Ways To Save Money
Picking up from Aereo’s example, Time Warner Cable Inc (NYSE:TWC), Charter Communications and Direct TV are now looking for means of saving money and want to capture free broadcast TV channels. Currently, these companies have to shell out a pretty sum in terms of re-transmission fees.
Aereo charges $8/month to gain access to broadcast TV and is presently embroiled in a court battle with media companies like CBS over the legal status of the service it provides. If Aereo is able to maintain its stand, cable companies will be able to adopt the same tactic to overstep the fees that they are currently paying for network signals said some people familiar with the matter. They have asked to remain unidentified as all talks are in their nascent stages. One of the persons said that Time Warner Cable Inc (NYSE:TWC) is also contemplating acquiring Aereo.
This month, broadcast TV companies have put forth a petition in the Supreme Court to obtain a ruling that states that Aereo runs an illegal operation. Barry Diller, the billionaire is backing the startup. The company makes use of literally thousands of smaller antennas, captures any free signals that are being transmitted over-the air and then in turn, transmits these via the internet to subscribers, for a fee. All this activity takes place with no consent from the broadcasters.
A spokesperson for Time Warner Cable Inc (NYSE:TWC), Maureen Huff said that if Aereo’s operation is found to be a legal one, the concept is quite interesting as it is related to fees that are charged for retransmission content. She did not comment on whether the company is planning on acquiring Aereo.
The legal fight that Aereo is enmeshed in pits it against some heavy-duty media companies like 21st Century Fox, Walt Disney and NBC Universal. The broadcasters want to be able to continue charging retransmission fees. These companies allow ABC, NBC, FOX and CBS to be aired via their systems.