Fox asks court to ban Dish’s ad-skipping features

By Liana B. Baker (Reuters) – Fox Broadcasting Company is asking a court to put a stop to two features on Dish’s new digital video recorder that let consumers skip commercials because it is hurting the TV networks’ business.

In May, lawsuits and a countersuit were filed pitting No. 2 satellite provider Dish Network Corp against CBS Corp, News Corp’s Fox, Comcast Corp’s NBC Universal and Disney’s ABC.

TV networks are upset that Dish, led by billionaire chairman Charles Ergen, would introduce the “AutoHop” feature that may well please viewers, but would undermine the networks’ key source of revenue: advertising.

Dish’s AutoHop feature on its Hopper DVR lets customers press one button to automatically skip commercials when they are watching recorded TV shows. Dish introduced its high-definition DVR called the Hopper earlier this year.

Fox said in a filing dated August 22 that is seeking a preliminary injunction against Dish in a district court in California because the network “likely to suffer irreparable harm” while the companies litigate further.

In addition, Fox said Dish’s “PrimeTime Anytime” feature, a service that records all of the prime-time TV programs on ABC, CBS, NBC, and Fox with one click and then keeps them saved for up to eight days, violates Dish’s contract related to accessing video programming on demand.

“By blocking television commercials, PrimeTime Anytime and AutoHop will cause fewer advertisers to buy commercials and erode the main source of financing for broadcast television,” Fox said.

Dish, which has about 14 million customers, made a software update last month on the Hopper’s DVR but it did not solve the problem and only “camouflages” Dish’s copyright infringement, Fox said.

A Dish Network spokesman said in an email on Sunday: “DISH believes consumers have the right to control their television-viewing experience. We’re disappointed at Fox’s continued fight against that right.” Dish maintains that the contested features let viewers fast-forward through but not delete commercials, and said the feature does not alter the broadcast signal.

A hearing on the injunction is set for September 21 in Los Angeles.

The case is Fox Broadcasting Co et al v. Dish Network LLC et al, U.S. District Court, Central District of California, No. 12-04529.

(Reporting by Liana B. Baker, editing by Gary Crosse)

Comments

  1. matt says:

    I have a hard time understanding FOX’s stance on this issue. Yes, it might cause a small blip in the advertizing dollars game, but think back to when cable TV first came out: It was meant as a solution to the growing problem of OVER-ADVERTIZING. Paying fees to the cable companies meant fewer commercials. Now, since Dish has released these excellent technologies, the networks will once again have to come up with an innovative idea to make sure they can still afford those corporate jets and lavish super bowl parties. I have the Hopper, and when a Dish coworker informed me about Prime Time Anytime and Auto Hop, I was a very quick sell. I can set Prime Time recordings to skip the commercials the next day, which saves me a TON of time. It’s also nice not having to search for the remote every time the action breaks. Best of luck networks, we the consumers are very happy with the Hopper.

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