Disney Bans Netflix from Advertising On Its TV Networks

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The Wall Street Journal is reporting that the Walt Disney Company has banned advertising from Netflix, across it’s entertainment TV networks. This affects channels like ABC, FX and FreeForm right before the launching of Disney+.

Disney isn’t the only new competitor that Netflix is going to be facing off with in the coming streaming wars (streaming is coming?). Along with Disney there is Comcast and AT&T that are looking to spend hundreds of millions of dollars on advertising to lure customers to each of their own streaming services. Wall Street Journal states that Netflix spend $1.8 billion on advertising in 2018 with $99.2 million on U.S. TV ads alone. Of that amount it is estimated according to iSpot TV that 13% went to Disney owned networks.

This move should not come as a surprise to anyone as Disney stated early this year that they would no longer accept advertisements from competing streaming services. They did however come to an agreement with every company… except for Netflix, who does not show ads in it’s show content.

Earlier this year, Disney stated that they would not be accepting advertisements from competing streaming services but they were able to come to a compromise with every company with the exception of Netflix who does not show ads in its content.

Disney’s push deeper into streaming is bringing to the fore its tensions with tech giants on multiple fronts. The company is separately at odds with Amazon.com Inc. over the financial terms for its apps in Amazon’s Fire TV streaming-media player, one reason that Disney’s forthcoming streaming service Disney+ has no Fire TV deal in place, The Wall Street Journal reported Thursday.

The streaming wars are definitely about to heat up and get interesting. If you remember in September, Disney’s Chief Executive Officer Bog Iger resigned from the Board of Directors for Apple on the same day that Apple announced they were launching their own streaming service which would directly compete with Disney+ and Netflix.

This move is an aggressive one towards Netflix as usually networks allow each other to advertise on competing platforms so we will see how other companies respond going forward.

Disney+ launches on November 12 at the price of $6.99 per month and will have content from the Disney Vault, along with Star Wars, Marvel and more.

 

Source: Wall Street Journal

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