The U.S. Supreme Court expressed skepticism about television technology Aereo in the early stages of the hearing. L2 Founder Scott Galloway predicted Aereo’s demise on Bloomberg TV this week, calling it “the Napster of our generation.” Eric Hippeau of Lehrer Ventures (also in the segment) rooted for the service, saying it had found a way to bundle up free television services for people who wish to be free of their cable bill. Hippeau said Aereo has a fighting chance, as the case is political and a pro-Aereo decision would be considered pro-consumer.
Galloway said the Supreme Court’s interpretation of “legal performance” in this case will determine the outcome. But even if the Supreme Court sides with Aereo, cable companies will find a way to circumvent it. The cable industry is being disrupted through services such a Netflix, but the transmission fees are an important part of the business. The cable industry has powerful lobbyists to ensure these fees remain. Galloway added that Aereo will not exist in 12 to 24 months.
Galloway also spoke about the scale of Alibaba in China, saying one in three packages shipped in the country are from a transaction on Alibaba. Alibaba’s IPO could be worth tens of billions, making it one venture home run. See full video here.
L2 emails keep you up to date on how brands are leveraging digital to grow their businesses.
Join Our EMail List