TiVo to Insert Ads At End of Programs

TiVo Inc. announced a new service that will let marketers place ads at the end of recorded programs and track how many people watch them.

The company, which makes digital video recorders, said Tuesday it would insert the ads after a television show has played, when there is nothing left to fast-forward, offering a way for advertisers to reach audiences who record shows and are more likely to skip through traditional commercials.

Tivo, based in Alviso, Calif., said the new ad scheme, dubbed "Program Placement," will allow advertisers to purchase ads against specific shows, the way they do on traditional television. Companies that have already signed up for ads include Burger King Corp., General Motors Corp. and MasterCard Inc., TiVo said.

With the growth in popularity of DVRs, advertisers and television networks have become increasingly worried that most viewers skip through commercials. TiVo said it will give marketers in the new program access to its audience measurement data, so they'll be able to track how many viewers play the ads at the end of the program.

In other news, on Monday a federal judge in Texas rejected the request of EchoStar Communications Corp. for a new trial in its patent dispute with TiVo, which won an $89.6 million jury verdict earlier this year.

Last month, the U.S. Court of Appeals for the Federal Circuit gave EchoStar the go-ahead to continue providing its digital video recorder service while the appeal is pending. The court had said EchoStar showed it had a chance to win and would be hurt if it was forced to shut down the service during the appeal.

In his ruling, U.S. District Judge David Folsom said EchoStar failed to raise any new legal issues that would justify a new trial. In April, a jury determined that EchoStar violated a TiVo patent for technology that lets users record one TV program while watching another.

EchoStar spokeswoman Kathie Gonzalez said the ruling is another step in a lengthy legal process -- and the next step will be a federal appeals court in Washington D.C., that specializes in patent law.