Disney Banning Netflix Advertising On Its Entertainment Networks

Viewing Netflix more as a straight-ahead competitor for its growing streaming business, Walt Disney has banned Netflix advertising on its entertainment networks.

The ban began in the summer. News of the decision was reported in The Wall Street Journal.

The ban means no Netflix commercials on any of Disney’s entertainment TV or digital platforms -- including ABC, Freeform, Nat Geo and FX Networks.

With regard to the Netflix decision, a Disney spokesperson, speaking with Television Daily News, stated: “The direct-to-consumer business has evolved, with many more entrants looking to advertise in traditional television and across our portfolio of networks.”

The spokesperson added: “While the initial decision was strictly advertising-based, we reevaluated our strategy to reflect the comprehensive business relationships we have with many of these companies, as direct-to-consumer is one element.”

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In addition, the spokesperson said other video streaming series -- where Disney has broader company business relationships, including carriage agreement for its channels -- will be allowed to advertise on Disney-ABC entertainment networks and platforms.

Disney will permit Netflix advertising to continue to run on its sports network group ESPN. Netflix does not air sports programming content.

For the period from October 3, 2018 through October 3, 2019, Netflix spent an estimated $8.3 million in advertising (49 airings) on ABC, according to iSpot.tv.

During that period, Netflix placed the most advertising of its broadcast network media schedule on NBC -- coming in at $24 million (76 airings). CBS followed at $13.6 million (64 airings), with Fox at $2.9 million (9 airings).

In November, Disney will launch Disney+, its high-profile premium TV/movie streaming service, which analysts say will compete with Netflix. Other streaming services from Apple, NBCUniversal, and WarnerMedia will also launch soon.

This includes Apple TV+, Quibi, Amazon, Roku and others.

For decades, no broadcast network has allowed paid advertising to appear on its airwaves from competing broadcast networks.  

However, competing cable networks, including premium cable TV channel HBO, have bought ad time on broadcast networks from time to time -- either nationally or through local TV station or local cable TV avails.

 
1 comment about "Disney Banning Netflix Advertising On Its Entertainment Networks".
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  1. Jeff Ferguson from Fang Digital Marketing, October 7, 2019 at 9:52 a.m.

    When my agency was buying for Son’y Crackle, we ran into something similar with Hulu and quite a few other competing platforms. As you note, this is nothing new or unique, but hey, it’s Disney right?

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