Disney Announces Decision To Stop Accepting Netflix Ads For Entertainment Networks

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Disney has decided to stop running Netflix ads on it’s entertainment networks.

The decision comes before Disney is set to launch its own streaming service, Disney+, according to a report published Friday by The Hollywood Reporter.

“The direct-to-consumer business has evolved, with many more entrants looking to advertise in traditional television, and across our portfolio of networks,” a spokesperson for Disney said in a statement. “While the initial decision was strictly advertising based, we reevaluated our strategy to reflect the comprehensive business relationships we have with many of these companies, as direct-to-consumer is one element.”

The change at Disney will not affect ad revenue for all networks. Freeform and ABC will stop accepting Netflix ads, however FX already didn’t accept ads from the streaming service. As Netflix doesn’t compete with Disney in terms of sports, ESPN will still accept advertising for Netflix. (RELATED: Disney CEO Bob Iger Says It Will Be ‘Difficult’ To Film In Georgia With The Abortion Ban)

Netflix is one of the industry’s top advertising buyers. In 2018 alone, Netflix spent $1.8 billion on cable advertising, The Hollywood Reporter reported.

Netflix also is a major player in award show advertising. The decision for ABC to stop accepting ads could keep the streaming service from advertising during the Oscars.