Disney bans Netflix commercials on its TV stations | Business

THE Disney already preparing the way for the debut of Disney +, scheduled for November 12. Preparations include avoiding references to competition: according to the Wall Street Journal, the company is banning Netflix to run on your TV channels.

Stranger Things

This is an extreme decision, as it involves most of the Disney-related channels, including broadcasters like ABC, FX and Freeform. For now, ESPN channels are an exception: The Verge, Disney confirmed that this network could still show Netflix commercials.

It is very likely that the ban on Netflix commercials is related to the imminent arrival of Disney +. But that shouldn’t be the only reason: apparently, relations between the two companies have cooled considerably in recent months.

According to sources close to Disney, this cooling is the result of a strategic change. The company is still open to partnerships with streaming services, but now it is looking for deals that include not only advertising, but also broader negotiations, involving distribution or content.

In that sense, it would be interesting for Disney if Netflix could promote some of its new films on its platform, for example. The problem is that Netflix does not show commercials.

In fact, Disney decided, at the beginning of the year, to no longer accept advertising on its channels from any rival streaming service, but eased that rule by closing broad agreements with companies like Apple and Comcast (which, guess what, will launch a streaming called Peacock). Apparently, the negotiations just did not progress with Netflix.

Disney + on TV

Despite being a very radical decision – after all, Netflix moved $ 1.8 billion in advertising just last year -, Disney’s now firmer stance is not surprising.

Until recently, streaming platforms served as important sources of revenue in content licensing for the company. But as these services grow, the audience for TV channels drops.

If it is to open up streaming, it is natural that the priority falls on its own platform that, as such, can compensate for the losses of TV networks.

Disney and Netflix were contacted but did not comment on the matter.

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