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Aereo backer Barry Diller defends online video broadcasting to Senate

Aereo backer Barry Diller defends online video broadcasting to Senate

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IAC chairman Barry Diller has argued for the rights of new online broadcasting companies at a gathering of the Senate Commerce Committee. Diller is worried about established companies stifling competition in the online arena.

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Aereo (STOCK)
Aereo (STOCK)

IAC chairman Barry Diller has argued for the rights of new online broadcasting companies at a gathering of the Senate Commerce Committee. Diller, who previously headed Fox, Paramount, and USA Broadcasting, is currently financing Aereo, a New York startup that has run into controversy over its streaming video service that captures and retransmits broadcast signals via a proprietary antenna. Diller is worried about established companies stifling competition in the online arena and wants Congress to "prevent cable and telecommunications companies from leveraging their dominance in existing markets," though no legislation is on the table as yet.

Complaints have been raised, for example, over Comcast's policy of promoting its Xfinity video on demand service by waiving the bandwidth cap it applies to competitors such as Netflix and Hulu. While the case against Aereo is of a separate, copyright-related nature, it's notable that someone with a long history rooted in traditional broadcasting would come out swinging for the new guys.