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Monday, May 21,2012

Discovery CEO warns Dish Network against skipping ads

Discovery Communications CEO David Zaslav warned Dish Network that it's playing with fire when it comes to a new commercial hopping DVR technology.

During a panel here at the National Cable and Telecommunications Association's annual tradeshow, Zaslav told CNN's Erin Burnett that the new feature Dish Network introduced recently on its Hopper DVR, which skips advertising during shows that are recorded from broadcast TV, could disrupt the industry in a negative way. He said the model is unsustainable since program owners need the advertising revenue to help cover the cost of their shows.

Dish co-founder and chairman "Charlie Ergen and Dish are a distributor of content," he said. "They need us to reach homes with our content. And if there is not going to be advertising fees, then there needs to be a lot higher subscriber fees."


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