Aereo files for bankruptcy protection

Aereo Inc., the online video-streaming service backed by businessman and Television Hall of Fame member Barry Diller, filed Thursday night for bankruptcy protection, five months after an unfavorable Supreme Court ruling. The service had allowed subscribers to watch, pause, and record live TV on their computers.

In June, the Supreme Court ruled that the start-up violated copyright law because it was similar to a cable service, but was not paying to transmit copyrighted material. The company argued that it was an antenna service and did not have to comply with copyright law.

The 6-3 decision in ABC v. Aereo was a victory for broadcast giants including Walt Disney Co.'s ABC, Comcast Corp.'s NBCUniversal, CBS Corp., and 21st Century Fox Inc.

The blow to Aereo forced it to rethink its business model. Aereo suspended its services three days after the ruling and, earlier this month, laid off most of its staff.

Aereo chief executive Chet Kanojia wrote on the company's website Friday that the ruling had created "regulatory and legal uncertainty" and that "without that clarity, the challenges have proven too difficult to overcome."

Kanojia said the Chapter 11 filing would allow Aereo to maximize the value of its business while avoiding the cost and distraction of litigation.