Lack of agreement could leave Amazon Fire TV without Disney + | Business

THE Amazon closed on Tuesday (1st) an agreement to include Disney productions in the Prime Video catalog throughout Latin America. Anyone who looks at it thinks that the relationship between the two companies is more than perfect worldwide, but not quite: Amazon Fire TV could become the only major set-top box on the market without access to the new streaming serviceDisney +.

Disney + on TV

The information comes from Wall Street Journal. According to the newspaper’s sources, Amazon wants to have the right to sell a “substantial percentage” of advertising space for Disney apps, but the media company resists. With that, the giants are without an agreement just over a month from the launch of Disney +, which will debut in the United States on November 12.

For a service to be available on Fire TV, Amazon usually asks for a percentage of advertising inventory that can reach 40%, according to WSJ, but it often drops to 30% or 20%, depending on the negotiations. In the case of Disney, sources point out that the most recent agreement attempt involved a 10% slice of space.

If the companies do not reach an agreement, the result can be very bad for both. First because, in the United States, Fire TV is the second best-selling set-top box, with 29% of market share, behind Roku (41%), but ahead of Apple TV (14%) and Chromecasts for Google (13%). It is a large audience lost to Disney.

Amazon Fire TV Stick

But this could also mean the departure of Disney applications from the Amazon platform. As you know, Disney owns half the world: it controls the streaming service Hulu and has among its properties names like ESPN, ABC, Fox, National Geographic, Lucasfilm, Marvel and Pixar.

It is not known exactly how Disney negotiated with other set-top box manufacturers, but the deals always vary widely. Roku, for example, usually asks for 30% of the advertising space of media companies, but Hulu pays 15% of the revenue with subscriptions obtained by the set-top box, and YouTube does not share anything from its ad inventory, according to O WSJ.

Meanwhile, time is running out: Disney + will debut in the United States on November 12 and has already announced that it will support Android, iOS, Apple TV, Chromecast, Roku, Xbox One, PlayStation 4 and web browsers. There is still no exact date for the launch of Disney’s streaming service in Brazil, but it should arrive at the end of 2020.

In Brazil, Amazon sells a single model of Fire TV, the Fire TV Stick Basic Edition, for R $ 289, to compete directly with Chromecast. Amazon and Google have been at odds in the past, which left Fire TV without YouTube and the Amazon store without selling Google products for months.

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