Does a company "publicly perform" a copyrighted television program if it is distributed to paid subscribers over the Internet? That is the issue behind the American Broadcasting Companies, Inc. v. Aereo, Inc. lawsuit before the Supreme Court. It is illegal to retransmit copyrighted television programs in a "public performance" without paying retransmission fees to the copyright holder. With the help of technology, however, Aereo seems to have found a way to circumvent federal copyright laws and not pay retransmission fees to broadcasters. Each customer has a dime-sized antenna that provides a "private performance," thus allowing Aereo to avoid having to pay retransmission fees to deliver the programming to customers. Viewers in New York, Denver, Boston, Atlanta, Miami, and other major markets can ditch their high-cost cable and satellite television service and receive twenty-four channels and DVR space to record shows for as little as $8-$12 per month. Moreover, Aereo may pick up low-power stations not carried by cable and satellite providers, letting advertisers expose their ads to "eyeballs" they wouldn't normally get. This also helps the smaller broadcasters because cable and satellite providers do not usually carry these stations. A Utah judge didn't see it that way, however, and ruled that Aereo's business model is "indistinguishable from that of a cable company." The case has gone all the way to the Supreme Court. One expert says the case is really about old versus new technology, about "rabbit ears meet the cloud." Rabbit ears refer to the old television antennas that received broadcast signals over the air for free (once the only way to receive TV programming).

1. Learn how Aereo delivers value to customers. Write a report on the company's value proposition and its four Ps.

2. Debate whether or not Aereo's business model is unethical or just smart marketing based on an opportunity made available by technology.