Aereo files for bankruptcy

US internet TV start-up Aereo, which recently lost a Supreme Court case over copyright violation, has filed for Chapter 11 bankruptcy protection.

Aereo has been struggling to stay afloat after ceasing operations in June after the US Supreme Court ruled that its method of using ‘personal antennas’ to give customers access to US broadcast networks without the need for a DTH subscription breached copyright law.

CEO Chet Kanojia said in a statement on Friday: “The US Supreme Court decision effectively changed the laws that had governed Aereo’s technology, creating regulatory and legal uncertainty. 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.”

He added: “Chapter 11 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.”

Last month, the firm was again barred from streaming live television to subscribers after a federal judge ruled it had violated broadcasters’ copyrights.

It closed its office in Boston earlier this month and axed dozens of jobs, with redundancies also made at its New York City headquarters.

The firm launched in 2012 with an initial US$20.5m investment led by former Fox CEO Barry Diller’s IAC, which was involved in two subsequent rounds of US$38m and US$34m.

However, the service, which charged users US$8 per month, attracted the ire of US broadcasters, and was pursued through every tier of the legal system before eventually being forced it to pause its operations.