Disney Bans Netflix Ads As Streaming’s Marketing Wars Intensify

Disney is banning advertising from Netflix across its entertainment TV networks, according the The Wall Street Journal, citing people familiar with the matter. It’s “a sign that the marketing wars over streaming-video are escalating as media giants battle each other for subscribers,” the report says. From the report: Disney, Comcast and AT&T are set to spend hundreds of millions of dollars on advertising over the next year to attract consumers to their new streaming-video services as they look to compete with industry juggernaut Netflix. Netflix spent $1.8 billion on advertising last year and will be playing defense against Hollywood’s new entrants. Disney, whose properties include ABC and Freeform, earlier this year put out an edict to staffers that it wouldn’t accept ads from any rival streaming services, but later reversed course and found a compromise with nearly every company, the people familiar with the situation said. The exception was Netflix.

In making its decision, Disney evaluated whether it had a mutual business or advertising relationship with the companies, one of the people said. Netflix doesn’t show ads in its programs. In a statement, Disney said the subscription streaming-video business has evolved, “with many more entrants looking to advertise in traditional television, and across our portfolio of networks.” The company said it re-evaluated its initial blanket ban on streaming ads “to reflect the comprehensive business relationships we have with many of these companies.”