Disney has recently announced that it will not air Netflix advertisements anymore. This comes ahead of the network progressing with its new streaming service, further tightening the competition between the two entertainment networks. According to international media, Disney will still air Ads on their channel ESPN. As Netflix does not host any live sports, it is not being seen as a direct competitor. However, they will no longer run on ABC and Freeform. According to the quarterly financial reports, Netflix which has become one of the entertainment industry’s biggest ad buyers has spent over $1.8 billion in 2018 and is on the run to top that this year.
Disney’s decision to ban Netflix Ads comes a month before the release of the new streaming service, Disney+. The streaming service is to charge $6.99 per month which will feature original series along with major Disney classics. It will also include major franchises like 'Star Wars' and 'The Simpsons' on the channel. According to industry experts, Netflix which has more than 150 customers globally will have to face a strong competitor in Disney. This move comes ahead of media and entertainment companies assessing their competitors in the changing times. However, most TV networks had no issue with Netflix airing their Ads on the channel. Although now with companies launching their own streaming services, the lines seem to be strict with companies focussing on their primary goals.
It usually is not unnatural for TV networks to refuse to showcase advertisements for rival companies. However, broadcast networks have run Ads for Netflix and Amazon Prime for years now. CEO Bob Iger is said to consider the launch of Disney+ one of the biggest moves of his 15-year-old career with Disney. Although it is a remarkable new initiative, this comes at a time when consumers are overburdened with choices like Netflix, Amazon Prime, Hotstar, and Voot.