Dish-Disney Deal Hung Up On The Hopper?
By Swanni
Washington, D.C. (October 2, 2013) - This is an update on our earlier coverage of the fee fight between Dish and the Disney-owned ESPN. See earlier articles below.
The carriage standoff between Dish and Disney could be over the satcaster's ad-skipping Hopper HD DVR, which Disney's ABC has attempted to terminate in court, reports Bloomberg News.
The two companies on Monday night announced that they have agreed to a short-term extension in their carriage talks, at least temporarily avoiding a blackout of ESPN, Disney-owned ABC affiliates in eight cities and the Disney channels on ESPN's airwaves.
But Bloomberg writes that a new programming agreement could be in jeopardy because of the Hopper, and Disney's insistence that Dish carry two new Disney channels, Fusion and the SEC Network.
The Hopper could be the most difficult obstacle to overcome. The set-top can automatically skip commercials during recorded network prime time programs. The networks, including ABC, say the HD DVR violates their copyrights because it removes the commercials without their permission. Dish maintains that the Hopper is just a better version of the traditional HD DVR because it skips the ads without the viewer needing to pick up a remote to perform the same task.
Thus far, Dish has successfully blocked the networks' legal efforts to stop subscribers from using the Hopper, but the lawsuits are still pending.
Bloomberg says the two companies have given themselves an extra day or two to work out a solution, but a longer negotiation is also possible.
Dish could use the Hopper as leverage to force Disney to accept lower fees to carry its channels, including ESPN and the ABC-owned affiliates, which are in eight large markets. For example, in return for agreeing to dismantle the Hopper so subscribers couldn't use its ad-skipping feature when ABC is on, Dish might be permitted to pay less to carry the Disney suite of channels.
TVPredictions.com has written in the past that Dish Chairman Charlie Ergen views the Hopper as a possible weapon in carriage talks and would gladly dump it if it meant paying less to carry certain channels.