Disney's ban on Netflix advertising a sign of 'increasing competition'
If it wasn’t before, the “Streaming Wars” are officially on between Netflix and Disney.
According to The Wall Street Journal, Disney has now banned Netflix advertising across all of its platforms, which would presumably include properties such as ABC and the multitude of Disney channels available on cable. Last August, it was announced that Disney+ will be unveiled this fall, featuring a wide range of Disney programming including new shows and Disney’s vast library.
There doesn’t appear to be any love lost between these two competitors.
It is certainly a sign of the times. Disney is willing to forego some rather sizable revenue to gain an edge for their fledgling streaming service which is in direct competition with the likes of Netflix as well Amazon Prime and new streaming services offered by HBO, Apple and NBC.
In 2018, Netflix spent over $1.8 billion on advertising, more than double what they spent two years ago. The Journal reports that “Netflix spent $99.2 million on U.S. TV ads during 2018, with some 13% going to Disney-owned entertainment networks.”
Rich Greenfield, a partner and LightShed and a media analyst, doesn’t think that Disney’s decision to ban advertising from Netflix does too much to hurt the streaming giants.
“To me, I think at the end of the day, Netflix not being able to advertise on Disney hurts Disney more than it does Netflix,” Greenfield told FOX Business.
“I just think that the competition between all of these companies is becoming more intense. This is another sign of the increasing competition between all these platforms.”
Now with Disney in direct competition with streaming giant Netflix, the decision has been made to draw a line in the sand. That’s some “Hakuna matata” right there but recently, there has been some friction between Disney and their competitors in the burgeoning streaming market.
Disney CEO Robert Iger announced his resignation from Apple’s board in September. Apple TV Plus will also launch in November, just days before Disney’s streaming option goes live.