Walt Disney’s contract renewal talks with Dish Network are hung up on Dish’s ad-skipping technology and terms for two new Disney cable channels, according to people familiar with the discussions.
Dish, the second-largest U.S. satellite-TV service, and Disney, owner of ABC, ESPN and Disney Channel, gave themselves one to two days beyond Monday’s deadline to hammer out an accord, said the people, who sought anonymity because the discussions are private. Talks may last longer, they said.
Dish’s AutoHop technology, introduced in May 2012, presents an obstacle to a deal. The one-button feature allows subscribers to skip commercials on recorded broadcast TV shows, undermining the effectiveness of network ads. Dish is embroiled in litigation with ABC, CBS, NBC and Fox over the feature.
Disney is also trying to build distribution for two new channels — Fusion, a venture with Univision Communications Inc. aimed at Latinos, and the SEC Network, which will feature Southeastern Conference college sports beginning next year. Terms for both are being negotiated, the people said.
Dish is based in Douglas County.
