Dish Network Corp. has agreed to curtail the use of a controversial ad-skipping feature on its latest digital video recorders for ABC shows, as part of a new long-term programming deal with ABC owner Walt Disney Co., the companies confirmed late Monday.

As part of the deal, Disney granted Dish online video rights to its flagship TV channels on terms that would allow Dish to launch an Internet-based TV service, something Dish has talked about in the past. Disney said it was the first time it had granted such rights.

Dish's agreement on the Auto Hop appeared to be a major concession in favor of Disney. Dish agreed to disable the "Auto Hop" ad-skipping feature for ABC shows until three days after the shows air. That period is important because advertisers pay for TV audiences measured up to three days after a show is broadcast. The Journal had earlier reported on the deal.

ABC, along with other major broadcasters, has been embroiled in litigation with Dish over the Auto Hop since 2012, when the satellite company unveiled the feature in its Hopper line of digital video recorders. As part of the new deal, ABC agreed to drop its litigation over the Hopper. The two companies also resolved a longrunning legal dispute between Dish and ESPN.

Broadcasters, which sued Dish alleging copyright violations, are concerned the Auto Hop feature could undercut advertising revenue. Auto Hop makes ad skipping easier than on conventional DVRs. Viewers need only click an on-screen button once to automatically skip all the commercials in some prime-time shows carried by the four major broadcasters. Conventional DVRs require viewers to fast forward through commercials by pressing a button at each commercial break.