Streaming TV Service Aero Files Chapter 11

Aero, the online streaming TV service backed by Barry Diller's IAC/InterActiveCorp

, said it filed for Chapter 11 Bankruptcy Friday, five months after suspending service in the wake of a key court decision. IAC gained more than 1 percent early Friday, while broadcast and cable television companies that Aero had competed with were little changed on the news. In a letter to subscribers Friday, Aero's Chief Executive Chet Kanojia said the filing enables Aereo to "maximize the value of its business and assets" while freeing it from the costs and distraction of litigation. https://aereo.com/ The company suspended service in June following a 6-3 Supreme Court ruling that found Aero's service infringed on copyrights held by TV broadcasters. Kanojia said the challenges posed by that ruling "have proven too difficult to overcome." Aero had provided subscribers with an individual remote antenna that offered access via PCs and mobile devices to TV broadcasts. As recently as last month, Aero reportedly agreed to comply with Federal Communications Commission rules governing satellite television providers and cable companies. http://www.washingtonpost.com/blogs/the-switch/wp/2014/10/13/aereo-to-the-fcc-let-us-join-the-cable-companies-we-tried-to-replace/ The rules include provisions on program carriage, emergency alerts, equal opportunity employment and closed captioning. Agreeing to be classified as a "multichannel video provider" would compel Aero to negotiate the payment of retransmission fees to broadcasters, which Aero had previously sought to duck.