Aereo's Indian-American founder files for bankruptcy

Streaming service company Aereo, founded by Indian-American Chet Kanojia, has filed for bankruptcy citing challenges "difficult to overcome", five months after the US Supreme Court ruled that the firm violated copyright law by streaming TV signals without paying for them.
In a blog post, Kanojia said Aereo had set out to build a better television experience for the consumer three years ago but it encountered significant challenges from the incumbent media companies.
In June this year, Kanojia lost a long-pending legal battle after the Supreme Court ruled against his company.
The 6-3 decision was a significant victory for major TV networks like Fox, ABC, NBC and CBS, who had sued Aereo claiming that it was violating copyright law by retransmitting the shows without paying for them, threatening their industry's business model.

"The US Supreme Court decision effectively changed the laws that had governed Aereo's technology, creating regulatory and legal uncertainty. And while our team has focused its energies on exploring every path forward available to us, without that clarity, the challenges have proven too difficult to overcome," Kanojia said.
Kanojia said Chapter 11 proceedings will permit Aereo to "maximise the value of its business and assets without the extensive cost and distraction of defending drawn out litigation in several courts."

He added that with so many shifts and advances in technology, there has "never been a more perfect time to take risks, challenge the status quo and build something special."

Prior to the Court ruling, the broadcasters had said that if a company like Aereo was allowed to avoid paying the fees, others firms could also follow, risking billions of dollars in revenue that broadcasters use to create new programmes.
Kanojia said he started Aereo because he was "frustrated" with a "broken" system and no longer served the consumer.
"When it came to watching live television, the options were few, the products available were cumbersome and didn't fit our increasingly mobile lifestyle, and costs were unreasonably high and rising," he said.
He said Aereo provided the first cloud-based, individual antenna and DVR that enabled users to record and watch live television on the device of their choice and the technology spread in more than a dozen cities across the country.

"We have traveled a long and challenging road. We stayed true to our mission and we believe that we have played a significant part in pushing the conversation forward, helping force positive change in the industry for consumers," he said.
The TV industry titans had been intent on maintaining a system that provides billions in revenue annually and had been fighting Aereo in court almost since its inception, claiming the service was stealing their content.
Brought up in Bhopal, Kanojia was a self-described "back bencher" in his youth. After earning an undergraduate degree in mechanical engineering in India, he came to the US and earned a master's in computer systems engineering.