Online-television startup Aereo has begun paying for traditional TV content, reaching a deal to add Bloomberg Television to its program lineup.
Shalini Ramachandran of The Wall Street Journal writes, “Aereo, backed by media mogul Barry Diller‘s IAC/InterActiveCorp., launched a Web TV service earlier this year that streams broadcast TV signals of New York stations to New York residents for a monthly fee. But the launch created an uproar within the television world, as Aereo didn’t get prior approval of the broadcasters and isn’t paying for the right to carry their signals. As a result, the major broadcast networks sued Aereo in federal court in New York, alleging copyright infringement. The case hasn’t been resolved.
“But Thursday, Aereo added its first cable channel by streaming Bloomberg TV content—with Bloomberg’s permission. Aereo is paying Bloomberg for its content, the companies said, without disclosing the terms.
“‘We believe that our members will see deep value adding in Bloomberg Television as their ‘go-to’ source for financial news,’ Aereo founder and Chief Executive Chet Kanojia said in a written statement.
“‘We are pleased to have Aereo among our broadcast distribution partners,’ Bloomberg TV said. The Bloomberg LP unit doesn’t have full distribution in traditional pay TV services, reaching 72 million homes, the company said. The universe of pay TV homes is about 100 million.”
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