Disney is banning commercials for Netflix Original movie and TV shows on several of its entertainment networks. As the Mouse House prepares to launch its Disney Plus streaming service in November, it continues to cut ties with its onetime collaborator Netflix. In addition to pulling its movies from the streamer (including, Marvel Studios, Pixar, and Star Wars films), Disney has ended their previous partnership with Netflix on Marvel TV's The Defenders mini-universe. However, despite how this looks, Disney executives continue to say they have no interest in "killing" Netflix with Disney Plus.
Rather, this is part of Disney's larger game plan to remain top dog as the streaming wars heat up over the next year. Indeed, Disney Plus is far from the only streamer that will launch in the forthcoming months. AT&T’s WarnerMedia is also getting its HBO Max service ready to go at the moment, even as Apple prepares to unveil its Apple TV+ service on November 1 (less than two weeks before Disney Plus debuts) and Comcast's NBCUniversal builds up more and more content ahead of its Peacock streaming service going live in April 2020. It's no wonder, then, that Disney has taken another step to give it a leg-up over its biggest streaming competitor.
Variety has learned that Disney will no longer be running ads for Netflix Original movies and TV shows on networks like ABC, Freeform, and FX. That won't be the case across the board, however, as Variety's source says Disney will still allow Netflix commercials to air on ESPN. It's not just Netflix either; the Mouse House is reportedly informing other streamers that it will no longer run ads for their exclusive content unless their relationship with Disney impacts the company's advertising, distribution or programming.
While it's obvious why Disney wouldn't want to promote the competition's streamer services once Disney Plus is up and running, there is a risk inherent to this move. As noted in Variety's report, streaming video is one of the fastest growing categories when it comes to TV advertising revenue, and Disney stands to lose out on millions of dollars in commercials (which, instead, would go to its rivals) by cutting Netflix out of the equation. Netflix hasn't been afraid to spend big when it comes to marketing its original content on Disney-owned networks, either. Just earlier this year, they paid a pretty penny to premiere the teaser trailer for Martin Scorsese's The Irishman during ABC's telecast of the 2019 Academy Awards ceremony.
This move just goes to show how much Disney is gambling on its streaming service becoming a success over the next year. It might seem silly to suggest the Mouse House could actually be hurt by this decision, but the fact remains that Disney Plus is an unproven area and Netflix's marketing has provided the company with yet another source of income over the last few years. But again, it's far from the only business that's taking big swings to ensure they don't get left behind or inadvertently assist the competition as the streaming wars carry on. Whether this move helps or hinders Disney in the long run, however, only time will tell.
Source: Variety
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