Sources tell Bloomberg that Dish Network (DISH) is nearing an agreement with Disney (DIS) that could end Disney’s lawsuit against the satellite network over its ad-skipping service.
Dish introduced the ad-skipped feature, called AutoHop, in 2012. The feature allows Dish subscribers with DVR boxes to skip over commercials on previously recorded TV shows. Broadcasters, including Disney, objected to the technology, which could potentially harm TV ad sales, and sued.
Under a potential deal between Dish and Disney, the satellite TV provider could end up paying Disney higher monthly subscriber fees for retransmission rights for Disney’s ABC Network programming.
Aside from Disney, Dish is also being sued by CBS (CBS), Fox (FOXA), Comcast’s (CMCSA) and NBC over the AutoHop feature. A deal with Disney could lay the groundwork for similar settlements with other broadcasters.
In October, reports surfaced indicating that the AutoHop dispute was hampering efforts to negotiate a carriage deal between Dish and Disney.
Both DIS stock and DISH stock fell modestly in Wednesday morning trading.