Aereo Settles with Broadcasters for $950,000

NEW YORK: The now-defunct live streaming TV service Aereo has agreed to pay $950,000 to CBS Corporation and other broadcasters to settle its $99 million copyright case.

The time-shifting TV startup is winding down in Chapter 11, after a U.S. Supreme Court ruling last June that declared its business model illegal. Aereo's technology relied on tiny antennas to store free over-the-air broadcasts to watch at a later time for a small monthly fee. After facing lawsuits from such broadcasters as NBC, FOX and Disney's ABC, the company filed for Chapter 11 bankruptcy last November.

The original amount for claims from various TV operators totaled $99 million. According to a filing Monday in U.S. Bankruptcy Court in New York, Aereo is proposing a settlement of $950,000. "In the absence of settlement, there is a likelihood of expensive, protracted litigation that will likely consume the Debtor’s limited remaining funds and prevent confirmation of a plan for the foreseeable future," Aereo said in the filing.

A judge in the U.S. Bankruptcy Court in Manhattan is scheduled to consider the agreement May 7.