Economy

Disney Blocks Netflix from Advertising Across Its Entertainment TV Networks

Disney Blocks Netflix from Advertising Across Its Entertainment TV Networks”

Disney said earlier in 2019 that it would not accept ads from other streaming services but changed its decision and compromised with other companies, except for Netflix, according to the people.

Disney has banned Netflix from advertising on any of its entertainment TV channels. Articles appear on euronews.com for a limited time. Fire TV, Roku and other companies offering such set-top boxes or plug-in "sticks" have become vital hubs for reaching consumers who stream media, and are increasingly playing the role cable companies have played in traditional TV.

Wieser said the "moving parts" that comprise negotiations between packagers of content, such as Fire TV, and content owners are evolving, but the negotiations between Disney and Amazon don't resemble a typical carriage dispute because there's still no standard business model.

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". I'm sure the fact that Disney+ will have to compete with Amazon's Prime Video in the streaming sphere plays into it somehow.

Disney+ will launch in a number of countries for $6.99 a month, much lower than any of Netflix's asking subscription prices.

Disney's push deeper into streaming is bringing to the fore its tensions with tech giants on multiple fronts.

Amazon now often starts out asking for about 40 percent of the ad inventory from programmers, with discussions often bringing this down to 20-30 percent, sources said.

Amazon has been demanding to sell a percentage of the inventory of ad-supported apps on its Fire TV platform. Whether or not that will be enough for Amazon remains to be seen, but a mutually-beneficial and swift resolution (ideally before Disney+'s launch) is desirable for all parties. As more streaming services are established to enter the world, including competition from Apple, WarnerMedia, and NBCUniversal, Disney is reevaluating its policies. Next month, it will introduce Disney+, a $7-a-month service featuring programming from Marvel, Pixar and other family-friendly outlets.



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