Aereo Supreme Court ruling: for how long is big broadcasting safe?


A would-be David lost to giants this week. What does the Aero Supreme Court ruling mean for broadcasting? 

Early on Wednesday, the Supreme Court of the United States ruled 6-3 in favor of American broadcasting companies , deeming the startup  Aereo's services illegal. 

The company, started in 2012, offered a low-cost service allowing subscribers to watch over-the-air content  on computers and other personal, non-television devices. Aereo had set up hundreds of small antennas to support this rerouting of content, which the plaintiff, ABC ( DIS ) argued violated copyright law.

The SCOTUS agreed.

Aereo, which some had even called the "Robin Hood of network TV,"  is now all but defunct, unable to offer what had been its primary service. Yet, the ruling is a narrow one, deliberately shying away from a sweeping decision  that could impede future adaptations of cloud technology. 

In the wake of the decision, share prices of broadcasting giants CBS ( CBS ) , Fox ( FOXA ) , Disney , and Comcast ( CMCSA ) (owner of NBC) are all up. Yet, given "the limited nature" of the holding, it's hard to say for sure that these broadcasters are safe from the precedent Aereo has set and from other upstart companies.

Do you think big broadcasters can rest easy with Aereo out of the way? Or could another innovative thorn in their side be just around the corner? Check out the list below to begin your analysis, and let us know what you think in the comments.

Click on the interactive chart to view data over time. 

1. CBS Corporation ( CBS , Earnings , Analysts , Financials ): Operates as a mass media company in the United States and internationally. Market cap at $35.21B, most recent closing price at $62.48.

2. Twenty-First Century Fox, Inc. ( FOXA , Earnings , Analysts , Financials ): Operates as a diversified media and entertainment company worldwide. Market cap at $77.79B, most recent closing price at $34.88.

3. Walt Disney Co. ( DIS , Earnings , Analysts , Financials ): Operates as an entertainment company worldwide. Market cap at $145.49B, most recent closing price at $83.90.

4. Comcast Corporation ( CMCSA , Earnings , Analysts , Financials ): Provides entertainment, information, and communications products and services in the United States and internationally. Market cap at $138.47B, most recent closing price at $53.21.

(List compiled by Ben Levine and Robbie Citrino. Monthly returns sourced from Zacks Investment Research.)

Kapitall Wire is a division of New Kapitall Holdings, LLC. Kapitall Generation, LLC is a wholly owned subsidiary of New Kapitall Holdings, LLC. Kapitall Wire offers free investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by New Kapitall Holdings, LLC, and its affiliate companies.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Stocks

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