Drop Dead — Disney to Netflix

Andrew Cummings
October 7, 2019

Sources told The Wall Street Journal that Disney is resisting Amazon's demand to have the right to sell "a substantial percentage" of the ad space on Disney apps.

With everything said, it appears this is Disney's battle to lose. If they don't, Disney apps could be removed from Fire TV, the second-largest distributor of streaming TV apps.

On the other hand, if you rely on the ABC app and the ESPN app and others a la carte - well, there could be issues. The deadline for the talks wasn't clear. Apple, too, will soon launch its Apple TV+ streaming service. In response, the company reversed its all-around ban on streaming advertisements "to reflect the comprehensive business relationships we have with many of these companies".

For years, cable providers have worked out arrangements with TV channels to carry those networks. During last month's Emmy Awards on Fox, Apple advertised its new streaming dramas, and Disney Plus advertised its wares.

Disney is now at odds with both Netflix and Amazon over advertising deals in both traditional linear and streaming TV, highlighting the new complexities of today's TV marketplace.

Streaming-media device makers have had fights among themselves for several years. But broadcast networks have normally run ads for streaming services like Netflix and Amazon Prime Video.

Disney's push deeper into streaming is bringing to the fore its tensions with tech giants on multiple fronts.

That's likely due to the fact that Disney had more reciprocal arrangements with other companies - but Netflix doesn't show advertising.

Well-known apps have the leverage to barter for more favorable terms.

The policy is different for Apple Inc. and Amazon.com, because those companies continue to have other partnerships with Disney. Disney reportedly offered Amazon 10 percent of inventory, so there may still be a sizable gap between what each side is comfortable with. Aside the Disney Plus, Disney operates streaming services Hulu and ESPN Plus. As we noted at the time, Amazon's Fire TV was notably absent from the list, which covers just about every other major platform on the market, including everything from mobile and desktop to Chromecast and gaming consoles. The service will feature highly anticipated Marvel and Star Wars originals like the Scarlet Witch/Vision series and The Mandalorian.

Other reports by iNewsToday