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If you're actually curious about what the argument is, the broadcasters' petition for Supreme Court review lays it out: http://online.wsj.com/public/resources/

• VladRussian2 13y ago
  the broadcasters says "Aereo retransmits". If Aereo were doing retransmission, even using individual antenna per customer, it would still be a public performance (Zediva case comes to mind here), and thus broadcasters would have a case. If Aereo only rents the antenna to customer, it is the customer who is doing broadcast capture and retransmission using the rented equipment - seems to be a well established legal activity (i'm wondering why such an argument didn't work for Zediva, though i don't think they "rented" DVD player to customer, only DVD itself - they were arguing that they can do anything like Netflix or Blockbuster, only by way of online streaming instead of physical transfer of the DVD, so it seems they didn't argue that it is customer who plays and streams rented DVD on rented equipment).