{"id":17231,"date":"2019-11-01T14:44:36","date_gmt":"2019-11-01T18:44:36","guid":{"rendered":"https:\/\/www.mdcthereporter.com\/?p=17231"},"modified":"2020-06-05T15:25:48","modified_gmt":"2020-06-05T19:25:48","slug":"disney-blocks-competitors-ads-hurting-themselves","status":"publish","type":"post","link":"https:\/\/mdcthereporter.com\/staging\/8357\/disney-blocks-competitors-ads-hurting-themselves\/","title":{"rendered":"Disney Blocks Competitors\u2019 Ads, Hurting Themselves"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">In the world of business, it\u2019s easy to forget that friendships never last. That happened with Apple and Google, with the latter\u2019s applications appearing on the first iPhone before the company began developing their own software, Android. Or when companies began deploying all their content onto <a href=\"https:\/\/www.netflix.com\/\"><span style=\"color: #0000ff;\">Netflix<\/span><\/a> before the service became the behemoth that it is now.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It is that relationship that\u2019s altered the course of streaming forever, leading to a number of companies putting out their own competitors. However, with Disney\u2019s recent decision to block advertisements from Netflix and others from their television networks like ABC, Freeform and FX, they risk stifling competition in a monopolistic way.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The argument brought forth is easy to understand. Disney is set to launch their Netflix competitor, <a href=\"https:\/\/www.mdcthereporter.com\/streaming-gets-bigger-with-disney-and-dc\/\"><span style=\"color: #0000ff;\">Disney+<\/span><\/a>, next month, complete with a large collection of films and content drawing from their vast library of intellectual property\u2014all at a price point of $6.99. It would be unfeasible to broadcast ads from their direct competitors on the networks it owns, they claim, as their business model has changed.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8220;The direct-to-consumer business has evolved, with many more entrants looking to advertise in traditional television, and across our portfolio of networks,&#8221; Disney said in a statement. &#8220;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.&#8221;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The problem with this argument is that, while business relationships have changed, the idea of competition has not. It is unlikely that one will abandon a broadcast network like ABC due to seeing an ad for <\/span><i><span style=\"font-weight: 400;\">Big Mouth, <\/span><\/i><span style=\"font-weight: 400;\">as many of these streamers carry the networks\u2019 shows through licensing deals. To block ads from Netflix, where some of their most popular titles include <\/span><i><span style=\"font-weight: 400;\">Grey\u2019s Anatomy <\/span><\/i><span style=\"font-weight: 400;\">(on ABC) and <\/span><i><span style=\"font-weight: 400;\">American Horror Story <\/span><\/i><span style=\"font-weight: 400;\">(on the recently-acquired FX), only hurts themselves, as the potential ratings boost from people discovering those programs\u2014thereby allowing their advertising rate per show to rise, increasing their revenue\u2014is lost.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s also an odd decision when one looks at the exception Disney is making. According to a report from the <\/span><i><span style=\"font-weight: 400;\">Wall Street Journal, <\/span><\/i><span style=\"font-weight: 400;\">Disney allows its competitors\u2019 ads to run on ESPN, attributing the decision to the fact that Netflix and others do not run sports. However, Disney also has a streaming service for sports\u2014ESPN+, released last year\u2014and plans on bundling it with Disney+ and Hulu when the former is released. Those competitors also aren\u2019t opposed to sports broadcasts entirely\u2014Amazon Prime Video subscribers can watch <\/span><i><span style=\"font-weight: 400;\">Thursday Night Football <\/span><\/i><span style=\"font-weight: 400;\">games with no cable subscription. If that form of advertising is okay, why not extend that to your other networks?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s unlikely Disney will reverse the decision, especially so close to the launch of Disney+. But when one looks at the programs that the company shares an interest with those competitors\u2014the Oscars, the Emmys and the constant bids for sporting events\u2014the decision reveals a selfish ambition to Disney\u2019s bottom line. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the world of business, it\u2019s easy to forget that friendships never last. That happened with Apple and Google, with the latter\u2019s applications appearing on the first iPhone before the company began developing their own software, Android. Or when companies began deploying all their content onto Netflix before the service became the behemoth that it [&hellip;]<\/p>\n","protected":false},"author":466,"featured_media":17232,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[11],"tags":[514,1032,1344,1345],"class_list":{"0":"post-17231","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-ae","8":"tag-disney","9":"tag-streaming","10":"tag-streaming-services","11":"tag-ads"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Disney Blocks Competitors\u2019 Ads, Hurting Themselves<\/title>\n<meta name=\"description\" content=\"Corbin Bolies writes about Disney\u2019s decision to block advertisements from its competitors, stifling their speech in 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