In an unusual move, Walt Disney Co. is reportedly banning Netflix from advertising across its entertainment TV networks. The move comes at a time when Disney is busy building its own streaming service which is expected to be launched next month. This shows that war over gaining more subscribers for streaming video services is escalating. Disney, AT&T Inc., and Comcast Corp. have plans to spend hundreds of millions of dollars on advertisement over the next year to draw consumers to their new streaming-video services and compete with two of their biggest streaming competitors, Netflix and Amazon. This is apparently the first of many moves that the company has planned to attract more subscribers.
The entertainment company has reportedly decided to ban Netflix ads across all of its TV networks like FX, ABC, National Geographic and Freeform. However, the industry-leading streaming service Netflix will still be allowed to advertise on ESPN because Netflix doesn’t offer live sports. The development comes close on the heels of Walt Disney Company CEO Bob Iger resigning from Apple’s board, a clear indication that two companies are serious about their streaming project and going to be serious rivals in the near future. The tech giant is launching it launch its own streaming service Apple TV+ in November. Weeks later, Disney will launch Disney+.
Similar situations were reported when Amazon and Google had engaged in a similar war. At that time, Fire TV devices of Amazon had stopped offering content from Google-owned YouTube. In a tit-for-tat move, the search engine giant’s Chromecast suite of streaming devices had put a ban on Amazon Prime Video content. This cold war went on for several months until they reached a compromise in July 2019. Earlier in 2017, Disney announced it would stop licensing most of its content to Netflix, as a result, only a few movies and shows were left on the platform. Netflix, which used to produce Marvel shows such as ‘Jessica Jones,’ had announced in February that it will stop making new seasons, eventually ending its relationship with the Disney company.