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More TV Disruption: Start-Up Aereo CEO Defends Technology

Tuesday, 2 Apr 2013 | 1:52 PM ET
Aereo: Bringing Live TV to Your Mobile Device
Tuesday, 2 Apr 2013 | 11:13 AM ET
CNBC's Julia Boorstin reports how a startup company plans to disrupt the television business with its latest legal victory for streaming video. And, Aereo CEO Chet Kanojia explains how the service works.

Disruption in the TV space continues, with Aereo receiving a favorable court ruling that allows the start-up to expand its service letting consumers watch live TV over the web—for now.

Appearing on CNBC Tuesday, Aereo CEO Chet Kanojia said, "It really is about the technology. If the technology is as we say it is, then we designed it to fall within precedent and within law."

While Aereo has been available in New York City only since 2012, its technology threatens TV broadcasters because consumers use its antennas to access TV programming via the web—bypassing the need for cable providers and TV boxes.

Here's how the service works.

Each Aereo subscriber leases an antenna that retransmits broadcast signals for streaming TV on a mobile device. Aereo runs on your smartphone or tablet, and you get TV as if you were sitting in front of a traditional TV screen.

Consumers can watch live TV or record shows. Subscription fees are $1 a day, $12 a month or $80 annually, plus tax.

Recent Ruling

The decision Monday from the U.S. Court of Appeals for the Second Circuit, in New York City, affirmed an earlier ruling that Aereo is not violating broadcasters' copyright in airing programs over the Internet from its farm of mini-antennas in Brooklyn. Aereo is backed by Barry Diller's IAC InterActive

(Read More: Aereo Wins Appeals Court Ruling vs. TV Broadcasters)

Opponents include Walt Disney, CBS, News Corp. and Comcast. They argue that Aereo's retransmitting signals without permission or payment violates copyright law. (Comcast owns CNBC parent NBCUniversal.)

(Read more: Netflix's Hastings: Internet-Era TV's New Mogul )

By CNBC's Heesun Wee; Follow her on Twitter @heesunwee

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