In a surprising move, Disney (DIS) announced that it will not allow Netflix (NFLX) to advertise its streaming services on most of its networks.
The announcement is a result of Disney putting a big push on its own streaming goals. Netflix is now not allowed to promote its service on ABC, FX, Freeform, and National Geographic. The company can still advertise on ESPN because there is no conflict with live sports.
According to financial-world.org, this move means that Netflix will not have a presence at ABC’s telecast of the Oscars. This event is one of the biggest advertising nights of the year.
It has been less than two months since Disney CEO Bob Iger resigned from his position on the board of Apple. This resignation sends a signal that Disney now sees Apple as a prime competitor as the technology giant looks to start its own streaming service coming in November.
Two years ago, Disney made it official that it would stop providing content to Netflix. In February, the relationship between the two companies officially ended when Netflix announced that it was no longer producing Marvel shows.
All eyes are now on the new Disney+ service, launching this November. This streaming service is already making waves with its special introductory rate of $6.99 per month. The service will offer original content in addition to a variety of classic Disney shows and movies.
Disney is seizing on the explosive growth of streaming services and direct-to-consumer business practices. By bypassing traditional broadcast avenues, Disney is harnessing its popularity to reach more audiences in unconventional manners to extend its brand.
Other networks that are also jumping on this growth are WarnerMedia, NBC, and CBS. WarnerMedia is behind the new HBO Max and NBC is looking at the launch of Peacock as its future. Both of these services are expected to begin next year. Meanwhile, CBS has already entered the direct-to-consumer market with its AllAccess service.
Dil Bole Oberoi
