/// Will News Corp. Pursue a Subscription Model?

April 8, 2013  |  Media Week

Chase Carey minced no words when it comes to Aereo. Addressing broadcasters gathered in Las Vegas for the annual National Association of Broadcasters convention, the News Corp. president and CEO said that if broadcasters fail to win their lawsuit against Aereo, News Corp. would pursue a subscription model and abandon its broadcast signal. “We won't just sit idle and allow our content to be actively stolen,” Carey told the NAB audience. “It is clear that the broadcast business needs a dual revenue stream from both ad and subscription to be viable. We simply cannot provide the type of quality sports, news and entertainment content that we do from an ad-supported-only business model. We have no choice but to develop business solutions that ensure we continue to remain in the driver's seat of our own destiny. One option could be converting the Fox broadcast network to a pay channel, which we would do in collaboration with both our content partners and affiliates.” Alleging that Aereo is pirating broadcast content, broadcaster owners have sued Aereo, but so far have had no success in halting the service. Last week, a New York appeals court upheld a lower court decision and refused to grant broadcasters an injunction against the service, which “rents” tiny TV antennas to subscribers in order to stream local TV signals to them over the Internet. Broadcasters aren't giving up. They can go to trial on the merits early next year, ask for an en banc reconsideration by the full appeals court or pursue a political solution. Carey seemed to suggest broadcasters would continue with legal courses of action, as well as take their case to lawmakers.


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/// Will News Corp. Pursue a Subscription Model?

April 8, 2013  |  Media Week

Chase Carey minced no words when it comes to Aereo. Addressing broadcasters gathered in Las Vegas for the annual National Association of Broadcasters convention, the News Corp. president and CEO said that if broadcasters fail to win their lawsuit against Aereo, News Corp. would pursue a subscription model and abandon its broadcast signal. “We won't just sit idle and allow our content to be actively stolen,” Carey told the NAB audience. “It is clear that the broadcast business needs a dual revenue stream from both ad and subscription to be viable. We simply cannot provide the type of quality sports, news and entertainment content that we do from an ad-supported-only business model. We have no choice but to develop business solutions that ensure we continue to remain in the driver's seat of our own destiny. One option could be converting the Fox broadcast network to a pay channel, which we would do in collaboration with both our content partners and affiliates.” Alleging that Aereo is pirating broadcast content, broadcaster owners have sued Aereo, but so far have had no success in halting the service. Last week, a New York appeals court upheld a lower court decision and refused to grant broadcasters an injunction against the service, which “rents” tiny TV antennas to subscribers in order to stream local TV signals to them over the Internet. Broadcasters aren't giving up. They can go to trial on the merits early next year, ask for an en banc reconsideration by the full appeals court or pursue a political solution. Carey seemed to suggest broadcasters would continue with legal courses of action, as well as take their case to lawmakers.


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