A new feature has just been added to Dish network’s digital video recorders. It’s called Auto Hop and once it’s turned on it completely deletes commercials from any content recorded on your DVR.
Predictably TV executives and advertisers are none too pleased with this innovation. According to Ted Harbert, the chairman of NBC, just because you have a technology exists doesn’t mean you should use it. Les Moonves, the CEO of CBS, wanted to know how Charlie Ergan, the co-founder and CEO of Dish Network, expected him to keep on making “CSI” without advertisers.
The fact is, Charlie Ergan might not care. He’s described as daring and at one time was a professional gambler. Industry watchers say if anyone can bear up under the unbelievable pressure that networks will bring, it’s Ergan. Some of that pressure has already manifested itself.
Some networks have been refusing to air Dish Network’s commercials among other punishments. Dish Network will also likely be forging ahead all alone in their ad-free endeavor. Most other companies that provide DVR technology are going in the opposite direction and making it less easy for consumers to skip over commercials.
So how will this play out in the industry? What does a world without commercials look like? And will Dish Network cave to pressure?
GUEST
John Lafayette, Business Editor, Broadcasting and Cable Magazine