Disney is reportedly banning ads from Netflix on its entertainment TV networks
Category : entrepreneur
- The Walt Disney Company will not allow ads from streaming rival Netflix on its entertainment TV networks, The Wall Street Journal reported Friday.
- Disney decided earlier this year it would refuse ads from any streaming service, but ended up reaching ad deals with many other streamers, according to The Wall Street Journal.
- Disney will launch its own streaming service, Disney Plus, on Nov. 12.
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The Walt Disney Company, which is launching its own streaming service next month, is banning ads from competitor Netflix across its entertainment TV networks, Alexandra Bruell and Suzanne Vranica reported for The Wall Street Journal.
While Netflix ads won’t be permitted on entertainment networks like ABC, Freeform, FX, and National Geographic, Disney will still accept Netflix ads on sports network ESPN, a source familiar with the company’s advertising plan told Business Insider.
Disney told its staff earlier this year that it would not show ads from other streaming services, but eventually worked out ad deals with almost every other streamer except Netflix, sources familiar with the situation told The Wall Street Journal.
Since Netflix does not show ads, its lack of presence on Disney networks could be a result of the fact that Disney would not be able to advertise in return. Disney considered mutual business and advertising opportunities with other companies when making decisions about allowing them to show ads on Disney networks, a source with knowledge of the situation said to The Wall Street Journal.
Netflix declined to comment to The Wall Street Journal, and Disney said it went back on its original plan to prohibit ads from rival streaming services “to reflect the comprehensive business relationships we have with many of these companies.” (Netflix also declined a request for further comment from Business Insider.)
A source familiar with the decision told Business Insider that Disney is not targeting Netflix in particular, but considering all competitive streaming service advertising on a case by case basis based on broad company relationships.
The streaming wars are growing fierce, with Disney and other legacy media brands launching their own services in the coming months.
Following the Disney Plus launch in November, HBO and NBCUniversal plan to have HBO Max and Peacock respectively up and running in early 2020.
Some of the most popular shows that have found their home on Netflix for years — from “Friends” to “The Office” to “Parks and Recreation” — are now changing hands between streaming services.
In addition to spending billions on licensing for these shows as well developing original content, media companies are also reserving large chunks of their budgets — stretching into the hundreds of millions — for advertising.