At the beginning of the month, Gannett (NYSE:GCI) gave Dish Network (NASDAQ:DISH) an ultimatum: block the Auto Hop feature on its Hopper DVR, or lose content. This week, Reuters reported that the two companies have finally reached a deal that does not involve a blackout for some Dish customers.
Dish’s Auto Hop feature allows users to skip commercials on recorded shows with a single button. Gannett, which provides content subsidized by advertisers, claimed that the feature ruined its business model. Advertisers won’t pay for commercial space if viewers are just skipping them, it said, and without advertising dollars, content lacks funding.
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Dish has been sued by CBS (NYSE:CBS), NBC Universal (NASDAQ:CMCSA), and Fox (NASDAQ:NWS) regarding the Auto Hop feature, and is still in court. Gannett was seeking a settlement in which Dish would pay more for content in order to compensate for the skipped advertisements. Gannett was reportedly seeking a 300 percent increase in fees, which Dish claimed was prohibitively high.
The terms of the deal have not yet been disclosed.