aereo

Aereo's live streaming TV service may be dead, but its cloud-based DVR could live on according to a recent ruling. A New York federal judge blocked the company's attempt to relaunch as an Internet-based TV service on Thursday, but left the door open for another possible strategy.

The company found itself in a tricky situation when the Supreme Court ruled it was operating as an illegal service earlier this year. Aereo was penalized for not following the rules of the cable industry, but it's apparently not allowed to follow those laws either. All that's left is the company's Cloud DVR service, which will be up for review in a separate hearing.

The cable companies may want to squash Aereo entirely, but the small startup may still have a chance. Several recent rulings have come down in favor of cloud-based DVR. The company previously suggested it could stream TV content through its online service as soon as 10 minutes after it airs live, though the official ruling could ask for more of a delay.

Aereo still hasn't said how it will proceed, though we're guessing the company will do whatever it can to stay alive. Cloud DVR might not be as exciting as watching live TV online, but it's still a useful service. Then again, we're already seeing some cable companies roll out their own cloud DVR solutions, so Aereo might not have much of a market even if it does win court approval.