Broadcast TV’s leaky basement

Recent court rulings have upheld the rights of Hopper (Dish Network’s ad skipping tool) and Aereo (feeding broadcast TV channels to your home via internet) to continue their digital challenges to the broadcast TV business model, as recounted by David Carr in his July 29 Media Equation column. These upstart services threaten TV advertising and retransmission license fees, respectively, representing worrisome leaks in the basement of the broadcast TV business model. Studies on ad-skipping have shown its appeal. Time-Warner Cable exploited Aereo threat as a bargaining chip in its contentious carriage negotiation with CBS this summer. Though largely unknown to the public, you have to wonder how quickly these digital disruptions could catch on once consumers take notice.