BURBANK, Calif. – Before launching its long-awaited streaming service Disney+, Disney bans ads from Netflix.
Ahead of launching Disney+, Disney has already made the move of banning Netflix ads on all of the TV platforms it runs. Disney has also pulled out all its listings from the platform. Disney has set the launching date of its streaming service on November 12, which will make it available on several countries and will become a direct competition to the recently launched Apple TV Plus, and other major streaming services such as Amazon Prime and Netflix.
The upcoming Disney+ streaming service is predicted to amass about 160 million subscribers, which is significantly larger than the current 139 million subscribers of Netflix, according to J.P. Morgan.
Laura Martin, a Needham analyst, also said early in August that Disney’s upcoming streaming service is set to win over Netflix.
A spokesperson from Disney commented on the development, stating that there has been an evolution when it comes to the direct-to-consumer business, and they have been reevaluating their strategy regarding the business relationships they currently have with other companies.
On the other hand, there wasn’t any comment from Netflix regarding the ban.
Last year, it was reported that Netflix worn-out about $1.8 billion on its advertising efforts. Disney, on the other hand, is planning to spend millions of dollars over their Disney Plus advertising campaigns in the coming months.
Netflix is one of the current streaming service giants, which has spent over $16 billion on original content just this year, offering availability in more than 190 countries. Disney and Apple TV, by comparison, also shed more than $1 billion on their original content in 2019.
One of the possible advantages it has as Disney+ competes with Netflix, is its significantly attractive price. Disney+ only costs $6.99 compared to the $8.99 per month for Netflix.
Despite the optimistic sentiments on the upcoming Disney+, it still has a lot to catch up on with the head start Amazon and Netflix already have as well as the earlier launch of Apple TV Plus a few days ago.