Satellite TV provider BSkyB has introduced a new set top box that will allow users to screen out ads. This could put a big dent in the ad revenue-supported stations Channel 4, Five and ITV. Because BSkyB garners close to 80 percent of its revenue from subscriptions, they are able to offer this service without losing much, if anything, financially.
While it's not yet clear how the technology works, the new set top box is said to eliminate the ads completely, not record them on a hard drive for later skipping similar to TiVo. Apparently, the technology allows for users to record just portions of a show, not the entire shows thus the ability to eliminate the ads. We'd love to see Donnie Deutsch in the boxing ring with BSkyB owner Rupert Murdoch on this one if the technology ever finds its way to American set top boxes. We'd pay to watch that.