As Streamers Prepare to Battle, Disney Bans Netflix From Advertising on Networks
According to a report in the WSJ, Disney has banned ads from their streaming rival, Netflix. Disney will launch their own streaming service, Disney+, on November 12th, and ahead of its launch has stopped allowing ads from their biggest rival in streaming.
The ban on Netflix ads, appears to be across some properties including ABC and Freeform, but not others like ESPN. Originally, the ban was supposed to be for any streaming service, but Disney has since decided against that, seeing the opportunity to take advantage of the ad dollars from other streaming services that they don’t view as directly competitive.
In the next 12 months, there will be the launch of WarnerMedia’s HBO Max, NBCU’s Peacock, Apple’s Apple TV+, Quibi, in addition to Disney+. They will join an already competitive field that includes Netflix, Amazon Prime Video, and Disney’s Hulu.
To launch Disney+, Disney ended their agreement with Netflix, which saw new releases go to the streaming service as part of a 2016 deal. Starting with their 2019 slate, all new Disney movies will be exclusively available on Disney+.
This isn’t the only battle that Disney is facing with another streaming competitor. Just yesterday, it was reported that Amazon and Disney continue to fight over ad rates for their TV Everywhere Apps like Disney Now. While Amazon has asked for 40% of ad inventory, Disney is looking to give up just 10%.
Additionally, Disney announced that Disney+ will be available on Roku, Apple TV, Android TV, PlayStation, Xbox, iOS, and Android at launch. One device notably missing was Amazon Fire TV. The two companies are apparently fighting over how much exactly Disney should be paying for customers who sign-up for the service directly through Amazon. Disney+ will be available as an in-app on Android and iOS.
In Mid-September, Bob Iger resigned from Apple’s Board of Directors ahead of their launch of Apple’s streaming service Apple TV+ on November 1st. Iger had been on Apple’s board since 2011, but with the companies now battling for streaming subscribers — the relationship was too close for comfort.
And this just the beginning. Between streaming companies, also owning cable and network TV stations, and others owning your living room device — expect the streaming wars to become even more heated as time goes on.