Fox is threatening to convert its entire operation to a pay-TV-only channel if Internet startup Aereo continues to "steal" its over-the-air television signal.
News Corp., which owns Fox, said not being paid by Aereo threatens the economics of broadcast TV, which relies on both retransmission fees and advertising.
Say what now?
Anyone with an antenna can pick up a TV station's signals for free.
However, as we well know, cable and satellite companies typically pay stations and networks for the right to distribute their programming to subscribers.
Industry-wide, those retransmission fees can add up to billions of dollars every year. Fees that Aereo is circumventing with its new business model: