Disney will stop airing Netflix ads on ABC, FX, Freeform and National Geographic
With the high-stakes streaming wars looming, Walt Disney Co. has stopped running commercials from Netflix Inc. on its general entertainment TV channels, which include ABC, Freeform, FX and National Geographic.stepped up plans to become a streaming giant itself
“It might be the Magic Kingdom, but don’t be fooled, those guys are hard-nosed businessmen,” said Mike Vorhaus, owner of the consulting firm Vorhaus Advisors. “Disney is serious about making its streaming service work.”The move was not a surprise. Disney’s policy change on advertisements mirrors a long-standing practice in the television industry: Networks do not accept commercials for shows that run on a competing network.
“The direct-to-consumer business has evolved, with many more entrants looking to advertise in traditional television, and across our portfolio of networks,” Disney said Friday in a statement. “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.
Last year, Netflix spent $18.4 million to buy ads on Disney channels, according to iSpot TV, which measures TV advertising. The bulk of that — $12.5 million — went to the ABC broadcast network, and $5 million went to ESPN and ESPN2.
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