The streaming wars just got a little bit uglier, as Disney will no longer be allowing Netflix ads to run on any of its networks, save for ESPN. Disney is getting ready to launch its own streaming service, Disney+, next month. They're going to be competing directly with Netflix, who currently dominate the streaming space with more than 150 million subscribers worldwide. As such, the Mouse House has decided it's best to no longer allow Netflix to advertise on networks like ABCand Freeform in the future.
According to a new report, Disney had initially sent out a directive to its staffers earlier this year saying they would no longer accept any ads from rival streaming services. However, Disney later walked that back a bit and restricted the decision to just Netflix. Why is that? Well, according to the report, Disney has mutually beneficial relationships with other companies that also have streaming services, such as Comcast and AT&T. Those companies will run ads for Disney, and Disney can then, in turn, justify running ads for their services. Netflix notoriously doesn't include ads, and therefore there can be no mutually beneficial advertising situation.
The report notes that Disney is set to spend hundreds of millions of dollars in advertising to attract subscribers to Disney+ in the coming year. For the sake of comparison, Netflix spent $1.8 billion in advertising. But Disney won't be taking any of those ad dollars in the future, as the company is looking out for its own self-interests. Disney, in a statement, said that the business of streaming has evolved "with many more entrants looking to advertise in traditional television, and across our portfolio of networks, adding that they changed their initially, far stricter policy "to reflect the comprehensive business relationships we have with many of these companies." Netflix, as of this writing, has not commented on the shift.
Not only is Disney+ on the way, but Apple TV+, HBO Max and NBC's Peacock are also set to enter the marketplace by early 2020. That means consumers are going to have a wide array of streaming options available. Content is going to be king and these various companies are already fighting to lock down A-list talent. It's only going to get uglier as consumers are forced to choose how to spend their hard-earned money. Disney has an advantage, in that, Disney+ not only will have a ton of desirable content from Marvel, Star Wars, Pixar and much more, but the service will cost just $6.99 per month, or $69.99 annually.
Netflix, by comparison, charges $12.99 per month for its most popular plan. Odds are, people aren't going to up and cancel Netflix in favor of Disney+. People will surely be subscribing to more than once service. Still, Disney isn't looking to help Netflix out anymore, even if they are willing to pay for the ad time. This news comes to us via The Wall Street Journal.