By Meg James and Joe Flint, Los Angeles Times –
LOS ANGELES — Fox Broadcasting Co. has sued Dish Network, becoming the first television network to fire a legal salvo over the satellite company’s controversial new ad-skipping device called AutoHop.
Dish, meanwhile, filed its own lawsuit, which asks a federal judge to declare that AutoHop violates no copyright laws. Dish sued not only Fox, but also CBS, Walt Disney-owned ABC, and Comcast Corp. controlled-NBC.
The television industry is grappling with new technologies that threaten to undercut the billions of dollars a year that the networks collect from advertisers to run 30- to 60-second television commercials. That advertising revenue underwrites the high cost of producing television shows.
Fox filed its copyright violation and breach-of-contract suit against Dish on Thursday in U.S. District Court in Los Angeles. Dish filed its suit in U.S. District Court in New York.
“The suit asks for a declaratory judgment that the AutoHop feature does not infringe any copyrights that could be claimed by the major networks, and that Dish, while providing the AutoHop feature, remains in compliance with its agreements with the networks,” the Englewood, Colo., company said in a statement.
While consumers with digital video recorders can fast-forward through commercials of recorded shows, Dish’s AutoHop takes it a step further. The screen goes black when a commercial break appears. A few seconds later, the program returns. The service can’t be used on live programming, such as a sporting event, even after it has been recorded.
With more than 14 million subscribers, Dish Network Corp.’s new technology may threaten the networks’ ability to continue to charge premiums for their commercial time.
Dish Network’s new feature, launched earlier this month, comes at a particularly awkward time for broadcasters as they are beginning negotiations with advertisers over the sale of their commercial time for the 2012-2013 television season.
“We were given no choice but to file suit against one of our largest distributors, Dish Network, because of their surprising move to market a product with the clear goal of violating copyrights and destroying the fundamental underpinnings of the broadcast television ecosystem,” Fox said in a statement. “Their wrongheaded decision requires us to take swift action in order to aggressively defend the future of free, over-the-air television.”
Dish, for its part, said the new technology was simply making it easier for consumers to avoid commercials.
“Viewers have been skipping commercials since the advent of the remote control; we are giving them a feature they want and that gives them more control,” David Shull, Dish senior vice president of programming, said in a statement. “We don’t believe AutoHop will substantially change established consumer behavior, but we do believe it makes the viewing experience better.”
I don’t understand why CBS, FOX, & NBC execs don’t want us to enjoy commercial-free TV. I’m a DISH employee – AutoHop is great because you can easily watch commercial-free TV. Public Knowledge, a consumer advocacy group, is taking a stand for consumers by creating a petition that tells CBS, FOX, & NBC media to keep their hands out of your living room & DVR. Sign their petition to keep control of how you watch TV http://bit.ly/KFdn1Q
This could encourage me to watch TV again. I gave up on the medium because not only it’s cost, but the adverts forced upon us by companies who take the consumer for low functioning morons.
The television commercial is the epitome of the lack of true creativity and arrogance in this era. It is almost as if those creating these 30 second adverts put little effort into it.
The few that did, were recognized world wide as brilliant. Clara Pella, that Pink Bunny that keeps going, dancing raisins, a PBJ asking, got milk, your brains in a frying pan, and of course, do you have any Grey Poupon?
You don’t have to think very long to see those messages got delivered loud and clear. You had to be living under a rock in East Timor to not know what they were selling.
Then you had the local creative folks like Crazy Eddie and Linn Burton. Telephone numbers ingrained in our skulls like Hudson 3-2700. And that burning question now over 30 years old, “Where’s the Beef!?!”.
No, I will not be insulted by what passes for adverts today. But this device or process, might just bring me back to the programming. Much to the chagrin of advertisers.
It won’t be long before the ADD HOP feature will be an APP that you can download and use for most everything.
This lead to an all important decision for consumers. Do we want to pay for our television and internet consumption up front or will we be ok have advertizing on the TV and Internet?
We are all going to pay one way or the other!
Nothing is free!
This was a great write-up of the situation, and it will be interesting to see how it goes. It may result in more companies coming out with this same type of ad-skipping technology, resulting in a huge and lasting change in the TV landscape. I’ve been using Auto Hop since it came out, and love it. It gives me the choice of having the commercials automatically skipped for me during shows recorded with PrimeTime Anytime. I’m a husband, father of two, and full time employee at a Dish call-center; I don’t have time to sit around watching live TV as it airs, so this has been a great time saver for me.