Amazon, Disney Fight Over Ad Revenue From Apps on Fire TV

Disney+ streaming

Disney+ streaming

While Disney+, which launches in just over a month, is an ad-free, subscription-based service, the Journal reported that Amazon's desire to secure a "substantial percentage" of ads on Disney's various other apps has impacted the talks for over a potential Disney+ offering on Fire TV. If they don't, Disney apps could be removed from Fire TV, the second-largest distributor of streaming TV apps.

The dispute is one reason Fire TV has no deal in place to carry Disney+, a coming Disney streaming-video service set to launch November 12, the people familiar with the situation said. Sources close to these discussions tell the WSJ that options include limiting "how much of the money committed during the summer to advanced ad sales can be used to promote streaming services" and charging streaming companies "premium prices for ad time".

Disney is spending a fortune getting into the streaming business this year, between buying huge chunks of Hulu and getting ready for Disney+, they are showing they are willing to take a hit from advertising to keep their viewers away from Netflix.

Being available on Fire TV devices is crucial for Disney, as its Disney+ service will compete with the likes of Netflix, Amazon Prime Video, and Hulu, which are all available on almost all imaginable platforms. During last month's Emmy Awards on Fox, Apple advertised its new streaming dramas, and Disney Plus advertised its wares. I'm sure the fact that Disney+ will have to compete with Amazon's Prime Video in the streaming sphere plays into it somehow.

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Disney reportedly thinks that its apps and forthcoming streaming service put it in a good position to push back against Amazon's demands. The reason given by Disney is that it has business relationships with the other companies and not Netflix.

However, this would not directly impact Disney Plus which is slated to launch without advertising on November 12.

Disney is reportedly banning Netflix ads across its entertainment TV networks Walt Disney banning advertising from Netflix Inc. over its entertainment TV networks, in favor of people intimate with the condition, a clue that the marketing wars over streaming-video are increasing as media huge battle each other for its subscribers. Roku, for example, has been pushing publishers for years to let the company sell a share of their ad inventory, as Variety notes.

Disney had initially looked to ban all competitive ads, but then reversed course and agreed to accept ads for Apple TV+ and Amazon shows, but kept Netlfix on the no-fly list. Netflix stocks, on the other hand, have been under some pressure from underperformance and the looming release of Disney+, which boasts control of the world's most valuable collection of entertainment IP.

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