Disney told employees earlier this year that it not accept any ads from from any competing streaming service, but later changed its mind and inked deals with nearly every company, except for Netflix, the sources said. In making its decision, Disney evaluated whether it had a mutual business or advertising relationship with the companies, one of the people said. Netflix, which doesn’t show ads in its programmes, declined to comment.
Disney’s ban of Netflix ads marks a significant shift, as competition heats up between traditional and tech companies, the WSJ noted. In the TV industry, TV networks sometimes rejected ads from direct rivals, especially if they included a specific time and date when a competing program was air. But broadcasters generally allowed streaming services such as Netflix and Amazon Prime Video to advertise, even when it became clear they were luring away viewers. Although Disney’s ban applies only to Netflix, some in the industry are pondering restrictions that could affect other players in streaming, including the new entrants. Disney’s ESPN will continue to accept Netflix ads.
Comcast’s NBCUniversal is planning to spend about USD 100 million on ads outside of its own properties to launch Peacock, set to debut in April, sources said, adding that the number could increase. NBCUniversal is expected to spend at least double that amount on its own properties, including a heavy amount of promotions for Peacock during its coverage of the 2020 Olympics. AT&T’s WarnerMedia is looking to spend around USD 300 million on advertising over the next year to push HBO Max, according to sources familiar with the company. Hulu, which is now majority-owned by Disney, spent USD 574 million in 2010 amid a major push, and USD 161.2 million last year, according to estimates from Kantar.
Separately, reports noted earlier that Disney was still in advertising talks with Amazon: Amazon’s Fire TV still has no deal in place to carry Disney+, as the companies continue to wrangle over advertising terms.
