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The whole problem here for the broadcast networks is that Aereo sets a precedent for the cable companies to also avoid paying the retransmission fees by setting up a million tiny antennas instead of one big one

This isn't correct. Aereo only rebroadcasts local market channels to local market subscribers. I in SF can't get NY based content, this would get shutdown quick (See Ivi TV [1])

This also only affects the local "Over The Air" affiliates usually Fox/NBC/ABC/CBS and a few other small niche channels. This is why in the article Fox is threatening to move content from the main Fox "OTA" channel to its cable only offerings.

Which is also why its never going to happen, this would effectively kill all the local market channels which are extremely powerful.

Long story short, Aereo really isn't that great a threat to that many people, and really unless you start getting folks like Netflix to start buying up local market TV Channels to distribute content there's not a lot here. And this really only affects a very small subset of available channels.

[1] http://www.businessweek.com/news/2012-08-27/ivi-tv-loses-bid...

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