Diller says Aereo is no legal loophole
IAC Chairman and Aereo investor Barry Diller defended the startup online video company in a recent interview with Bloomberg TV. Asked if investing in the company will pay off despite the long legal battles it currently faces, Diller said Aereo is providing Americans with a "legal right" to broadcast signals.
Broadcast networks have for the second time asked a federal appeals court to block Aereo from selling its service.
"It is settled law in the U.S. that if you have an antenna, broadcasters must provide a signal you can receive without an interference... All we're doing is providing a technological method for them to do it," Diller said. "It's not a legal loophole. It's a right."
Diller said he understands why the broadcast networks are nervous--the traditional pay-TV bundle is under threat. Moreover, "no incumbent wants [to let] anyone in," he said. "That's an absolute, unbreakable rule."
The investor's interview with Bloomberg TV followed a question-and-answer session at the Milken Institute Global Conference Monday, during which he said he thought some of the networks' reaction to Aereo is an attempt to get Congress to step in. But he said he doesn't think Congress will act.