Controversial US TV streaming service Aereo has filed for Chapter 11 bankruptcy, citing the regulatory and legal challenges to the company that “have proven too difficult to overcome”.
In a blog post announcing the move, Aereo said that it has appointed Lawton Bloom of Argus to serve as Aereo’s chief restructuring officer and claimed that Chapter 11 proceedings would allow the firm to “maximise the value of its business and assets without the extensive cost and distraction of defending drawn out litigation in several courts.”
“We have travelled a long and challenging road. We stayed true to our mission and we believe that we have played a significant part in pushing the conversation forward, helping force positive change in the industry for consumers,” said Aereo founder and CEO Chet Kanojia.
Kanojia claimed that the US Supreme Court’s decision in June that ruled the OTT streaming service to be illegal was too difficult to overcome, despite what he claimed were “significant victories” in the federal district courts in New York and Boston and the Second Circuit Court of Appeals.
Aereo had initially found major success and planned multiple launches throughout the US before the courts ruled against it. US broadcasters were so threatened by its business model that both Fox and CBS said they would consider making their flagship networks cable channels if it was allowed to continue.