Disney bans ads for Netflix


Amazon.com Inc., which has its own streaming service, remains a key partner with Disney in distributing its channels - through the Fire Stick device and in selling consumer products like "Frozen 2" dolls.

The Disney-owned ABC, Freeform, and FX are among the networks that will not run commercials from Netflix, according to a report from the Wall Street Journal. If Amazon and Disney don't come to an agreement and the latter's apps vanish from Fire TV, Disney will miss out on a major distribution channel. It definitely effects what kinds of ads we're going to see - which in turn, effects how many of us will use each service.

Disney commented that they changed their decision about not allowing ads from any streaming services "to reflect the comprehensive business relationships we have with many of these companies". Likewise, the new-era streaming distributors have their own asks when they negotiate carriage of streaming apps, such as a portion of the content company's advertising or subscription revenue. Prior to this year, Amazon wouldn't carry the app, and Google didn't offer Chromecast users the ability to connect to Amazon Prime Video.

Disagreement over ads on streaming platforms is not new.

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People close to the Disney-Amazon situation said it isn't as acrimonious as a traditional cable-carriage dispute.

Netflix, which spent $99 million on U.S. TV ads past year, needs that exposure to protect against Disney and other new entrants.

Wieser said the "moving parts" that comprise negotiations between packagers of content, such as Fire TV, and content owners are evolving, but the negotiations between Disney and Amazon don't resemble a typical carriage dispute because there's still no standard business model. Aside the Disney Plus, Disney operates streaming services Hulu and ESPN Plus.

Disney is facing a lot of issues with the upcoming launch of Disney+. The service will feature highly anticipated Marvel and Star Wars originals like the Scarlet Witch/Vision series and The Mandalorian. As things stand, Disney+ will have apps for Roku, iOS, Apple TV, Android, PlayStation 4 and Xbox One.