UPDATE 2-Gannett and Dish reach contract deal, avoid blackout

(Adds that agreement has been reached)

Oct 8 (Reuters) - Gannett Co Inc said it reached adeal with Charles Ergen's Dish Network Corp on Mondayavoiding a blackout that would have prevented some Dishcustomers in the United States from seeing content broadcast bynetworks ABC, NBC and CBS.

Newspaper and television station owner Gannett and the No. 2U.S. satellite TV provider were locked in negotiations - adeadline of midnight on Oct. 7 was extended - over fees and adigital video recorder that lets viewers skip commercials.

Called the Hopper, Dish contended last week that the DVR wasthe major sticking point in the contract negotiations.

A person at Gannett with direct knowledge of the talks, whodid not want to be identified because the discussions are notpublic, said that while the business implications of the Hopperwere part of negotiations, the DVR was not at the center of thedispute.

The stakes involved Dish customers in 19 cities includingAtlanta, Washington D.C., Denver, Minneapolis, Cleveland,Phoenix and Sacramento who would have lost access to variousABC, CBS and NBC-affiliated stations owned by Gannett.

Dish introduced the Hopper earlier this year with a functionthat allows subscribers to skip commercials automatically whenthey are watching recorded shows.

While the DVR can currently skip ads only the day afterairing, Dish can exert further pressure on broadcasters bythreatening to skip ads for recorded broadcast shows the sameday, which would destroy ad revenue for broadcast stations,Janney Capital Markets analyst Tony Wible said in a note.

Shares of Gannett and Dish were little changed, trading at$18.38 and $32.02 respectively on Monday morning.

(Reporting by Jennifer Saba in New York and Neha Alawadhi andSruthi Ramakrishnan in Bangalore; Editing by Louise Heavens,Sreejiraj Eluvangal and Dale Hudson)

((neha.alawadhi@thomsonreuters.com)(within U.S. +1 646 2238780, outside U.S. +91 80 41356385)(neha.alawadhi.thomsonreuters.com@reuters.net))