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Cox Cable Will Block Ad Skipping for Selected VOD
Monday, May 7th, 2007 at 4:00 PM - by .(JavaScript must be enabled to view this email address)
For the better part of a decade, TV watchers have been accustomed to skipping over commercials they prefer not to watch. Now, Cox Communications is going to disable that function for some content, according to the Wall Street Journal.
"Walt Disney Co.’s two big TV networks, ABC and ESPN, have struck a deal with cable operator Cox Communications Inc. to offer hit shows and football games on demand -- but with the unusual condition that Cox disables the fast-forward feature that allows viewers to skip ads," Brooks Barnes wrote.
The feature change only applies to the video on demand content supplied to Cox and not to the general operation of the DVR. The move comes as the networks have seen a steady erosion of ad sales because customers can skip over commercials on all content, including the VOD services.
"Broadcasters have been eager to include advertising, however, because they see it as more lucrative than charging for each episode," the article pointed out.
Cox took this action in order to gain access to the VOD content, which is growing rapidly in popularity. Also, the cable companies have been able to use VOD services to gain a competitive advantage over satellite systems. The President of Cox, Pat Esser, believes that their customers would rather have access to VOD programming than the ability to skip commercials. "People want their content, and they want it for free, but I think they realize that there is a business model to keep intact for them to get it that way," he said.
Disabling the feature completely, however, is not an option. Cox realizes that the fast forward feature is so popular, they couldn’t disable it for all content, or they’d risk sending their customers fleeing to the satellite carriers.
While the cable and satellite companies struggle with these compromises, Apple has neatly sidestepped the issue. The customer pays for the content and watches it without commercials. However, Apple’s selection of content remains small compared to cable and satellite, and a mix of the two viewing methods may be required for some time to come.
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