Why Disney+ Hasn’t Been Announced For Amazon Fire?
Earlier this year at Disney’s Investor Day event, an image was shown highlighting all the different devices that Disney+ would be available on, including Amazon Fire Stick, Roku, Chromecast, Apple TV and others.
However since then, Disney has confirmed Disney+ will be on many of these devices at launch, but hasn’t officially confirmed it on Amazon devices. Amazon is the second largest supplier of streaming media boxes in the US, with 29% of the market, just behind Roku.
We are asked dozens of times a day about Disney+ being available on Amazon Fire sticks and tablets, but now, according to the Wall Street Journal, Amazon and Disney reportedly are locked in a standoff over the advertising inventory within Disney apps on Amazon’s Fire TV platform.
This is because Amazon wants to sell a “substantial percentage” of the available ad space on Disney streaming apps including Disney+, but Disney won’t agree to these terms. Amazon usually want 40% of the ad inventory from programmers, but can be pushed down to 20%. Disney are reportedly only offering 10%.
The deal isn’t just effecting Disney+, as Disney apps could also be removed from Fire TV, the second-largest distributor of streaming TV apps including ABC, ESPN and Disney Channel. Disney believes that since it has so many popular apps, it gives them substantial clout. And they want to give up any ad inventory to Amazon.
Roku currently uses a different system for subscription-oriented services, as they pay Roku a one-time “bounty” when people sign up for the service through a Roku app or pay on a recurring basis. Currently Hulu gives Roku about 15% of the subscription revenue from customers who signed up for the service through Roku.
This is similar to how Disney deals with cable companies, as offering a percentage of consumers’ monthly cable fees, while the cable providers often get access to a portion of the commercial time on the networks. And these cable negotiations often can get heated, resulting in channels being removed.
Talks are still on going, especially as neither company wants to lose potential earnings, but it looks like Disney is holding out and won’t agree to Amazon’s terms. This news could also follow a similar situation to the recent Spider-Man Sony deal, where it went public before they agreed on a new contract. There apparently isn’t a deadline for the talks to conclude, but Disney+ is set to launch in the US on November 12th.
Hopefully this deal is sorted soon, so Amazon Fire users can watch Disney+.
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