PhoenixBTV walks Aereo’s hazardous path

OTAOTT

PhoenixBTV screen shots from the Android app storeIf you stay in one place long enough, you’ll probably find a restaurant black hole. That is, one restaurant will build the storefront and furnish the dining area and kitchen and everything, then go out of business. A couple of months later, a second restaurant will move in, usually change the cuisine and shuffle some decor, and soon it also goes out of business. Maybe half a year after that, a third restaurant will start making arrangements towards its own grand opening in the same spot. And you wonder, what does this third place know that the first two restaurants didn’t?

There must be something attractive in a restaurant black hole’s location, yet there’s also a fatal flaw. I remember one spot at the corner of an extremely busy intersection, so it always had lots of cars passing by, but its driveways were too close to the corner to get in and out easily and it didn’t have enough parking. My current example is in a strip mall anchored by a very busy grocery store, but in a neglected corner of the center, not visible from the grocery store’s front door.

Didja Inc. is testing a service in the Phoenix AZ market that provides some over-the-air TV signals to users of its PhoenixBTV Android and iPhone apps. You can see where I’m going here. Taking freely available OTA signals and passing them along to subscribers was in the business plan of ivi.tv, FilmOn, and most famously, Aereo. All three were blocked by court actions brought by broadcasters and their friends, even though the latter two services had well-financed legal teams. Aereo lost in a weird US Supreme Court decision that was based not on what Aereo did but what it was like. FilmOn continues to fight in federal court.

According to a story by Jeff Baumgartner in Multichannel News, PhoenixBTV is steering clear of the big four networks while carrying Phoenix’s digital subchannels and independents. I remember when FilmOn did that for a couple of months in its markets, until the court made it stop. The PhoenixBTV site suggests it plans to add major networks eventually in “a paid premium version with more than 50 channels of local broadcast TV including the most-watched channels!”

Didja CEO Jim Long says it has its current broadcasters’ permission during the apps’ free beta period; I hope he’s also got contracts for when PhoenixBTV tries to go commercial. As for the legality of PhoenixBTV and its differences from Aereo, Baumgartner wrote, “Though Didja’s technical approach does involve the capturing of local over-the-air TV signals, Long declined to discuss the architecture of PhoenixBTV in much detail. Long also would not get into the business relationship his company has with local broadcasters.” Uh oh.

(By the way, the PhoenixBTV is only available on its apps, which require a device-level location check just like the DirecTV Now apps. Unlike DirecTV Now, there appears to be no way to reach PhoenixBTV from a deskop computer.)

So I wonder what Didja knows about the restaurant location it’s moving into. I’m sure it sees the lucrative possibility of streaming OTA on subscribers’ phones. Does it also have a good workaround for the fatal flaw, or will it suffer its predecessors’ fate?

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