Ok, the whole "Tiny antenna" thing is a gimmick...
They are doing what cable company's have always done, first with antennas of their own, and some now are getting it via fiber...to their head end, and then distributing it to their subscribers. The only difference here is the distribution is in the "cloud"....you use your tablet or phone to access your virtual set to box that provides your live or DVR'd content to that device.
With that said, the local broadcasters have successfully forced the cable companies to PAY them for that "Free" signal for years. Which, I have never understood anyway, if it is free to me on an antenna, what should my cable company have to pay them for it, then pass that charge on to me in the cost of my cable, so that I can view a free signal? Let's say I am too lazy to put up my own antenna or live where I can't and I am slightly out of range of my "martket's" TV channels....why are the broadcasters charging a fee to cable to push their signal where it didn't go before (or could not be received due to conditions or equipment limitations)....seems to me the cable company should be CHARGING the broadcasters to get on their lineup....if anything....but not the other way around.
Anyway...that's the way it is....so why is this delivery method any different? Perplexing, isn't it.