Cablevision Wins Key DVR Technology Suit

gavel A major victory for Cablevision Systems Corp. against the Hollywood studios and television networks took place when the Supreme Court declined to hear a case over its network DVR technology.

TV studios and programmers have long argued that network-DVR technology -- where the guts of a storage system for cable customers sits with the cable operator, not with a set-top household unit -- is a violation of federal copyright laws.

Hollywood studios have also been concerned that network-DVRs in the hands of cable operators could foster more TV commercials fast-forwarding, thus hurting their ability to profit from TV shows.

Cablevision has pushed for network-DVR because it saves money acquiring costly set-top boxes, as well as providing installation and service to subscribers.

Cablevision proposed a network-DVR system back in 2006, and film studios and TV networks promptly sued. TV and media companies filing suit included Time Warner Inc., Walt Disney Co. and CBS Corp. Media content companies won a preliminary round in a federal court before losing in the appeals court.

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In a statement, Cablevision chief operating officer Tom Rutledge said regarding the Supreme Court's move:

"This is a tremendous victory, and it opens up the possibility of offering a DVR experience to all of our digital cable customers. At the same time, we are mindful of the potential implications for ad skipping, and the concerns this has raised in the programming community."

Rutledge added that the decision will allow Cablevision to "deliver real benefits to advertisers." He did not elaborate.

The network-DVR decision will give cable operators an advantage over satellite competitors, which Rutledge says those companies cannot technologically handle. Later this summer, Cablevision will be rolling out network-DVRs in its systems.

1 comment about "Cablevision Wins Key DVR Technology Suit".
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  1. E.B. Moss from Moss Appeal, July 14, 2009 at 10:14 a.m.

    Perhaps a DVR in the sky could be a consumer advantage for cable, but isn't there an argument to be made that satellite could have an advantage with advertisers, if fewer of their viewers are fast-forwarding through ads?

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