Apple eyeing ad-skipping TV box, sources say

LOS ANGELES — Apple Inc. is developing ad-skipping technology that would let owners of its Apple TV set-top box and future television devices watch shows without commercials, people with knowledge of the matter said.

Apple executives have briefed at least two owners of broadcast TV networks and cable chan- nels, as well as some of the biggest U.S. pay-TV systems, said the people, who asked not to be identified because the talks are private. One proposal is for Apple to reimburse programmers for skipped ads, they said.

The company is seeking to develop TV products with broader appeal than Apple TV, a set-top device purchased by 13 million consumers, chief executive officer Tim Cook said in May at the D: All Things Digital conference. Apple TV is more appropriate for “hobbyists” than mainstream viewers, he said. Apple continues to work on a “grand vision” to update TV-viewing that remains “much like 10 or 20 years ago,” Cook said.

Jessica Lessin, a technology writer, reported on July 15 that Apple was working on the adskipping initiative.

With advertising accounting for the largest share of their revenue, commercially supported TV networks have resisted skipping technology.

Dish Network Corp. introduced ad-skipping for broadcast network TV shows in its Hopper TV set-top box in March 2012. 21st Century Fox Inc., Comcast Corp.’ s NBCUniversal and CBS Corp. sued, claiming the service will destroy free, overthe-air prime-time television. Dish sued the networks in New York, seeking a court ruling that it isn’t infringing copyrights.

Apple has also been working to license more content for people to watch via Apple TV.