Disney Bans Netflix Ads On Its TV Networks
The streaming wars are heating up as the Walt Disney Company has banned any advertising from Netflix across its entertainment TV networks, according to the Wall Street Journal.
This will include all of Disney’s networks including ABC, Freeform, National Geographic, FX, Disney Channel, however ESPN will continue to run Netflix commercials.
Earlier this year, Disney had told staff that it wouldn’t accept ads from any rival streaming services, but later reversed course and found a compromise with nearly every company, except for Netflix.
This decision was based on whether it had a mutual business or advertising relationship with the companies. Since Netflix doesn’t show ads in its programs, Disney wouldn’t benefit.
Disney said in statement:
“The direct-to-consumer business has evolved, with many more entrants looking to advertise in traditional television, and across our portfolio of networks. While the initial decision was strictly advertising based, we reevaluated our strategy to reflect the comprehensive business relationships we have with many of these companies, as direct-to-consumer is one element.”
This type of ban isn’t unusual, since in the traditional TV industry, TV networks reject commercials from other networks, but have been allowing streaming companies to advertise.
With Disney set to run three different streaming services later this year, with ESPN+, Hulu and Disney+, it does make sense from their point of view to promote their own platforms and not their competitors. However both Apple and Amazon offer a different service to Disney, since they also have their own devices like tables and streaming boxes, which Disney wants to have its apps and services available on.
Earlier this month Netflix has warned investors that “If the available marketing channels are curtailed, our ability to attract new members may be adversely affected”.
Disney is spending a fortune getting into the streaming business this year, between buying huge chunks of Hulu and getting ready for Disney+, they are showing they are willing to take a hit from advertising to keep their viewers away from Netflix.
What do you think of Disney banning Netflix advertising?