The service -- which uses tiny antennas to capture broadcast TV signals and deliver them to the home, via the Internet -- is akin to consumers going to Radio Shack or Best Buy to buy an old-fashioned TV antenna, Diller said in remarks at the All Things Digital technology conference in Rancho Palos Verdes.
It's not about charging subscribers for free over-the-air broadcast signals, Diller said. Rather, it's creating a Web TV offering that targets a generation of consumers who don't want to pay a cable or satellite TV distributor for expensive bundles of programming they don't watch.
"I don't want to go beat up broadcasters," Diller said. "I want to help move the centricity from fixed line or satellite closed systems to open Internet systems."
Aereo launched in
Aereo investor Diller said the service is founded on the premise that the status quo, in which pay-TV distributors control access to programming, is going away. Television, over time, will reach viewers via the Internet, he said.
"I don't think closed systems in our world, today or tomorrow, are going to hold," Diller said. "I certainly think that, of course, they're going to be defended, and ideas like TV Everywhere and all sorts of other concepts that try desperately to keep that closed money circle going."
CNN Worldwide President
"If you're offering that in a way that they're not getting paid for it, that's an issue," said Zucker, a longtime network executive and former chief executive of
Diller said the broadcast networks have long paid for programming through advertising; noting that only in recent years have
"The quid pro quo for getting their license [is] they would broadcast directly to consumers and charge advertising for it," Diller said. "If their audience grows by virtue of what we're doing, then their ad revenue grows."