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An appeals court ruled that Cablevision's DVR service does not infringe copyright laws. The decision could mark an important turn in how advertising efforts will reach the audience. As expected, the media companies that have filled suit against the service will try appealing to the U.S. Supreme Court.
Cablevision's network DVR service allows subscribers to save their favorite TV shows on the company's servers and then watch them whenever they have time. As a result, these people also have the possibility to skip the ads that media companies have inserted during these TV shows. In fact the DVR service that Cablevision offers acts like a normal DVR, only that people don't need a special device in order to benefit of it.
Media companies like CBS, Disney, ABC, NBC, Turner and 20th Century Fox, have filed suit against Cablevision because of the service two years ago. According to them, the network DVR works more like a video on demand service and, as such, Cablevision should pay them a fee for every show that the company offers.
The appeals court considered the demand unfounded and ruled in favor of Cablevision.
The decision might determine other cable companies to create such services. However, up until now, no major player has announced its intentions in this direction. If this happens, and if people will constantly keep skipping TV ads, advertising companies might need to change their strategies.
This might translate into an increased focus on ads that would be sent via the set-top boxes that cable companies install in people's homes, instead of inserting them during T.V. shows.
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