News Corp. threatens to move Fox shows to cable (but don't hold your breath)*

Consider it the media giant's nuclear option - a saber-rattling response to the Barry Diller-backed startup Aereo, which pulls over-the-air signals from local stations (including the Fox network lineup) and then streams them to its subscribers for a fraction of what cable or satellite services cost. That's a potential threat, considering how much money Fox and the other networks receive from fees paid by traditional pay TV operators like Time Warner Cable and DirecTV. "We won't just sit idle and allow our content to be actively stolen," said Fox in a statement." So far, court efforts to block the Aereo service have been unsuccessful, but the case has not even been tried, and besides, Aereo is only available in the NY area (although the company plans expanding in other markets). One more thing: Moving Fox programs from a broadcast feed to a cable-only transmission would result in lost viewers - perhaps as much as 10 percent. In other words, the threat by News Corp. COO Chase Carey seems more bluster than anything. Still, Carey's comments (not to mention the attention they've received) underscore the sensitivity among the big media companies about how alternative distribution systems could eventually upend their tried-and-true business model. Coverage from ATD and Deadline.

*Here's the statement from Aereo:

"Aereo has invented a simple, convenient way for consumers to utilize an antenna to access free-to-air broadcast television, bringing television access into the modern era for millions of consumers. It's disappointing to hear that Fox believes that consumers should not be permitted to use an antenna to access free-to-air broadcast television. Over 50 million Americans today access television via an antenna. When broadcasters asked Congress for a free license to digitally broadcast on the public's airwaves, they did so with the promise that they would broadcast in the public interest and convenience, and that they would remain free-to-air. Having a television antenna is every American's right."