The Wall Street Journal reported last week that Disney is banning ads from Netflix video streaming services on all of its entertainment television networks, including ABC.

The decision to shut down Netflix ads comes after the company failed to achieve a mutually beneficial relationship. For example, Netflix does not display ads on its platform, so Disney cannot use Netflix to promote its upcoming movies, TV shows, or streaming service: Disney +.

While many broadcast services companies, including Apple, WarnerMedia and NBCUniversal are poised to enter this market, Disney is reassessing its policies “to reflect the overall business relationships with many of these companies”.

TV networks ‘refusal to run competitors’ ads is not surprising. However, broadcast networks typically show ads for broadcast services, such as Netflix and Amazon Prime Video. As the entertainment landscape has changed, streaming services have become a major product for older media companies. While Disney networks such as ESPN still carry ads for live streaming services such as Apple’s TV Plus, these relationships seem to be mutually beneficial.

This may be Disney’s newest feature when it comes to competing in the video stream. It is expected that the company will launch its broadcast service (Disney Plus) without making it available on the devices (Fire TV) from Amazon, because of the conflicts over advertising.

If Disney launches its new service without making it available on Fire TV, it could be a major blow to the service – scheduled for launch on November 12, especially as Fire TV is the second largest distributor of broadcast applications.

Source : WSJ