With a month to go before launching its platform, Disney has determined that it will not run competing streaming service ads on its entertainment channels. The information was disclosed in a Wall Street Journal report.
From the market point of view, the company's justification is quite consistent. According to them, services like Netflix do not provide space for advertisements within their platforms. Therefore, there is no benefit for both parties to cede advertising space.
With the decision, US channels like ABC and Freeform will not run advertisements from competitors. The same will be true of FX and Hulu, broadcasters acquired after the FOX deal. Only sports channels, such as ESPN, will continue to feature advertisements for other services.
The ban also hits HBO MAX, Apple TV + and Amazon Prime.
Was Disney complicating Netflix's life? (Source: Fortress of Solitude / Disclosure)
The fight between the platforms
Undoubtedly, the service most affected by the decision is Netflix. In this way, the company loses an important marketing space for the dissemination of its vast catalog of exclusive productions.
In addition, Disney + will hit the market at a much more affordable price: only $ 6.99. Despite the leaner catalog, the platform will have valuable brands as attractive. For example, the productions of Marvel and the Star Wars universe.
Bob Iger, Mickey Mouse's current CEO of the house, has already admitted that the lower price and high quality exclusive content will be the strategies to face the red rival. Of course, this will greatly contribute to her winning new users.
Remembering that Disney + will be released on November 12 in the United States. The platform is expected to arrive in Latin America only in the second half of 2020.