Disney baned Netflix ads from on its entertainment television networks as it continues to build its own streaming ambitions and Disney is no longer accepting Netflix ads on most of its entertainment networks.
Disney clearly told that the “direct-to-consumer business has evolved, with many more entrants looking to advertise in traditional television, and across our portfolio of networks” continuing that it has “reevaluated our strategy to reflect the comprehensive business relationships we have with many of these companies, as direct-to-consumer is one element.”
Disney, Comcast Corp., and AT&T Inc. planning to spend hundreds of millions of dollars on advertising over the next year to draw consumers to their new streaming-video services as they look to fight with industry juggernaut Netflix.
Netflix spent $1.8 billion on advertising last year and will be playing defense against Hollywood’s new entrants.
Disney, whose properties include ABC and Freeform, before this year put out an edict to staffers that it wouldn’t accept ads from any rival streaming services, but later reversed course and found a compromise with nearly every company, the people familiar with the situation said. The exception was Netflix and Disney baned Netflix ads.
In progressing its decision, Disney decided whether it had a mutual business or advertising relationship with the companies, as one of the people stated. Netflix doesn’t show ads in its programs anymore.
Nevertheless, in a report, Disney announced the subscription streaming-video business has grown, “with many more entrants looking to advertise in traditional television, and across our portfolio of networks.”
The company also declared it re-evaluated its first blanket ban on streaming ads “to reflect the comprehensive business relationships we have with many of these companies.”
After all of this, Disney baned Netflix ads marks and it’s an important shift. In the TV industry, it isn’t great for TV networks to reject ads from direct rivals, particularly if they include the special time and date when a competing program will air.
Although broadcasters have regularly supported streaming services such as Netflix and Amazon Prime Video to advertise, even when it became clear they were luring away viewers.
Disney had initially attended to ban all competitive ads, but then reversed course and agreed to accept ads for Apple TV+ and Amazon shows, but kept Netlfix on the no-fly list.
“The direct-to-consumer business has evolved, with many more entrants looking to advertise in traditional television, and across our portfolio of networks,” a Disney spokesperson told in a declaration. “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 is just the latest conflict Disney is facing when it comes to competitors in the streaming space. The company is also looking at potentially launching Disney+ without making it available on Amazon’s Fire TV, due to conflicts over advertising.
It would be considered a big blow to Disney+’s launch if that happens, considering Amazon Fire TV is the second-largest distributor of streaming apps. While a deal can still be reached by the time Disney+ launches on November 12th, it’s an additional sign of how tense relationships are going to become.
The launch of Disney+ is one of the most important projects to Disney CEO Bob Iger over his 15-year tenure in the position.
Securing that it’s successful is key. It just additionally happens to arrive at a time when consumers are going to be inundated with streaming choices, including HBO Max, NBCUniversal’s Peacock, and even the short-form video streaming service Quibi. The streaming wars, as they’re colloquially called, are still heating up.
Finally, Put more bluntly, Disney does not need Netflix at all.
Netflix does not sell any advertising on its own platform, so Disney has no opportunity to quickly advertise Disney Plus to Netflix customers. And Netflix is not embedded within a larger media communications operate that Disney relies upon for cable distribution.