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Sinclair Broadcast Group, Inc. Message Board

  • jrad52 jrad52 Jan 14, 2014 2:52 PM Flag

    Aereo effect?

    I wondered about ysterday band today's weakness and suddenly realized that it's due to the fact that last Friday the Supreme Court agreed to hear the Aereo case. If the Aereo service is upheld, it's a killer for retransmission fees, or because broadcast stations may go cable (very doubtful). Anyway, if they agreed to hear the case last Friday, a decision can't come down until June, and I think the selling is overdone. But what do I know?

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    • I agree with you about the reason for the recent weakness, however the market (as usual) has it wrong regarding Aereo. Aereo is a threat to the cable companies, not the broadcasters. Retrans is NOT going away because of the Telecom Act, it's illegal for the Cable Co's to retransmit a signal without paying for it. Their is no way for the Cable Co's to get around the Telecom Act.

      • 1 Reply to value_invstr
      • I may be wrong but I believe Aereo is a threat to both cable companies and broadcasters. Cable does not want to compete with Aereo's $8 monthly fees and broadcasters won't be able to negotiate large fees from cable companies if the cable companies see Aereo getting the same product for free. They'll still have to pay the broadcasters but the broadcaster's negotiating position will be severely weakened. On the bright side I believe the Supreme Court will side with the networks and this could turn into a buying opportunity.

        Sentiment: Buy

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