Just as Disney readies the launch of its Disney+ streaming service, the company has reportedly banned Netflix ads from its TV networks. According to the Wall Street Journal, Walt Disney Co. plan to spend hundreds of millions on advertising the impending launch of its Netflix competitor.
Sources indicated that Disney put out an edict to staff earlier this year to no longer accept ads from any rival streaming services, but the decision was later reversed. Talks resulted in agreements with all the big streaming players besides Netflix. As such, most of its networks, including ABC and FX, will no longer show ads for Netflix. ESPN, however, will continue to air the ads. In 2018 alone, Netflix spent almost $100 million on advertising, 13 percent of which went to Disney-owned networks.
Of course, Netflix isn't the only company at odds with Disney. The company and Amazon reportedly failed to agree on terms to have a Disney+ app available for Amazon's Fire TV media player, meaning a separate device or a Smart TV app will need to be used to gain access to the service.
Disney released a statement on the situation, and said it had walked back on the outright ban of streaming competitors "to reflect the comprehensive business relationships we have with many of these companies." The decision to only ban Netflix reportedly came from the lack of commercials on the platform itself, meaning there isn't a mutual benefit for both involved.
Disney+ launches on Nov. 12.