Disney has reportedly imposed a ban on advertising for Netflix shows across its entertainment networks which includes ABC, FX and Freeform says The Wall Street Journal.
An exception is being made for ESPN which will continue to accept the competitive spots. Netflix spent nearly $2 billion last year on advertising and broadcast networks have been flooded with ads for it and rival services like Amazon Prime in recent years.
The report indicates Disney initially looked to ban all competitive ads, but has since agreed to accept ads for Apple TV+ and Amazon shows. The move comes as the media and tech sectors are about to enter a very high-stakes battle for supremacy in the streaming space with tens of billions of dollars at stake.
Disney is launching its own direct-to-consumer service, Disney+, on November 12th with Apple to debut its subscription offering, Apple TV+, on November 1st. WarnerMedia’s HBO Max and NBCUniversal’s Peacock are readying for launch next spring.
While there’s been talk about people ditching their Netflix subscription for Disney+, results of a new CNBC survey indicate that over 75% of Netflix subscribers do not intend to subscribe to either Disney+ or Apple TV+, and for those that do “the vast majority expect to also maintain their Netflix subscription”.
They also indicate most existing Netflix subscribers tend to opt for multiple streaming video subscriptions, especially as they continue to reduce their spend on traditional TV offerings.