A marketing war is underway that has Disney (NYSE:DIS) and Netflix (NASDAQ:NFLX) preparing for battle.
This marketing war comes as Disney bans Netflix ads on its platforms. What this means is that the large collection of channel and streaming services that it owns will no longer be allowed to run advertisements for the streaming rival.
While this is bad news for the streaming company, there is at least one place where the Disney bans Netflix news doesn’t apply. NFLX will still be able to purchase and run ads on EPSN, which does belong to DIS. The reason for this exception to the ban is unknown.
So what’s behind the Disney bans Netflix news? Disney is preparing to release its Disney+ streaming service on Nov. 12. The service will include new shows from the Marvel and Star Wars universes. It appears that DIS doesn’t want its own platforms undermining this service with ads from Netflix, reports CNBC.
This battle between Disney and Netflix comes as customers prepare to deal with a fragmented streaming future. Many companies and channels are setting up their own streaming services to rival Netflix.
While competition is good, it will be interesting to see if cord cutters will be willing to pony up the dough for multiple streaming services after choosing to leave expensive packages from cable providers behind. It’s possible that subscribers won’t put up with searching for shows and movies through multiple platforms. That may result in many of these streaming options collapsing over the next few years.
DIS stock was up 1.62% and NFLX stock was up 1.80% as of Friday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.
