DISH Network Corporation
) popular hopper device again came under huge criticism as
) owned Fox network appealed before the federal court in Los
Angeles to stop the former to offer PrimeTime Anytime service
facilities like live and recorded TV shows on smartphones and
tablets to its customers via second-generation Hopper set top
It all began in May last year, when DISH Network launched a
new technology called Auto Hop, which allows users to skip
commercials at the time of watching recorded TV-shows.
Introduction of such technology has created a lot of tension
among major TV broadcasters like
Walt Disney Co.
) Fox network and NBC Universal.
The broadcast networks claim that the new feature not only
violates copyright laws but also significantly jeopardizes their
advertisement revenue. The end result was that all the four major
TV network companies filed a lawsuit against DISH Network.
However, DISH Network believes that it has not infringed any
copyright law as the new service is similar to the DVR service,
which provides flexible viewing of TV shows at their own
preferred time. Moreover, skipping of advertisement is possible
only during recorded programs and not at the time of live
broadcast of the show, hence the technology does not violate any
contract agreement with the broadcasters and also sued these
Despite huge criticism from broadcasters, the auto-hop device
received huge mass appeal and the federal court judge has not
issued any stay order on DISH Network's popular device. Moreover,
the launch of such devices has helped the company to reduce its
monthly subscriber churn rate from 1.63% in 2011 to 1.57% in 2012
and also drives its ARPU to $77.10 in 2012 from $76.45 in
So, it is to be seen how the federal court deals with the
fresh appeal from Fox network.
DISH Network currently has a Zacks Rank #3 (Hold).
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