Shares of broadcasting companies jumped Wednesday morning after the
Broadcasters have long said Aereo violates copyright law and threatens their business by distributing their signals without paying them.
Investors responded to the court decision.
In midsession trading Wednesday, shares of
Aereo, founded in 2012 and available in 11 markets, charges customers between $8 and $12 a month for its service that includes a cloud-based digital video recorder. It argued to the high court that its service did not violate the Copyright Act, claiming that it acted as an antenna service rather than a cable company.
The court disagreed and ruled against Aereo in a 6-3 decision, overturning a lower court ruling.
Marci Ryvicker, a senior analyst at Wells Fargo who covers the media and cable industries, said the decision was "clearly a positive."
In a note to clients, Ryvicker said the ruling was not a surprise. "We continue to like the broadcast group and diversifieds," Ryvicker said.