A non-profit TV streaming app might be good for free-of-cost entertainment but is definitely bad for business. And the streaming service Locast is now getting this late realization, because four of the world’s biggest TV networks ABC, CBS, NBC, and Fox have filed a lawsuit against Locast, stating that the streaming service is violating its copyright law by broadcasting their over-the-air streaming signals to their customers, at free of cost. The TV networks feel that Locast has now become a threat to their business earning and hence, have issued the lawsuit. In defense, Locast’s founder David Goodfriend has stated that Locast has always been, and is still operating under legal parameters and obeying all the legal guidelines. He added that Locast had been facing the heat of ABC, CBS, Fox, and NBC, ever since its subscribers had increased over 60,000.
The four broadcasters have also lodged a complaint against AT&T, not only for their support for Locast but also for their donation of $500,000 to Locast, last month. According to their complaint, AT&T has reportedly merged Locast into its DirectTV and U-Verse cable services, because having a backup partner like Locast would help AT&T to compete with major television networks. As for Dish, Goodfriend was a former worker at the satellite network, under Charlie Ergen, another strong critic against the increasing re-transmission charges.
The current condition of Locast is somewhat similar to Aereo: Another streaming service which provided access to major broadcast networks along with providing portable antennae to their subscribers. They made this scam appear legal, but the broadcasters had filed a case which had reached to the Supreme Court of United States, resulting Aereo facing a flat defeat and was never heard of again.
Locast is currently working in 13 cities including major viewer markets such as New York, Los Angeles, Chicago, and Houston. However, it is guaranteed that the following few months of the court trials on Locast will be no less intense than any suspense TV series.