I've been talking about this service for some time. If courts uphold that Aereo's use of over-the-air TV transmissions is legal, it turns the broadcasting industry on its head. As this Journal Sentinel piece points out, cable companies are watching this fight. If Aereo prevails, nothing stops cable companies from using the same re-transmission technology, thereby sidestepping the fees fights that have resulted in local stations blacked out on cable systems in Wisconsin and elsewhere.
During Journal Broadcast Group's dispute with Time Warner Cable I asked JBG exec Steve Wexler about Aereo. His short answer at the time was too small to worry about. I wonder if he still feels that way.