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Aereo suspends service after unfavourable Supreme Court ruling

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NEW YORK, N.Y. - Online-streaming service Aereo Inc. is temporarily closing down its operation, three days after it was dealt an unfavourable ruling by the U.S. Supreme Court.

"We have decided to pause our operations temporarily as we consult with the court and map out our next steps," Aereo said in a letter to customers posted on its website Saturday.

The Supreme Court dealt Aereo, backed by Barry Diller, a major setback on Wednesday in ruling that the television-over-the-Internet service operates much like a cable TV company. As a result, the service violates copyright law unless Aereo pays broadcasters licensing fees for offering TV stations to customers' tablets, phones and other gadgets.

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