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With the streaming wars in full swing, entertainment companies have found a new battleground: advertising. According to a new report from The Wall Street Journal‘s Alexandra Bruell and Suzanne Vranica, Disney is now banning Netflix advertisements across its networks, a portfolio that includes FX, Freeform, ABC, and more. While the company said it has been able to develop “comprehensive business relationships” with other streaming services, like Amazon Prime Video and Apple, Disney bosses have reportedly found it difficult to find a “compromise” with Netflix, which does not show ads in its programming.
The Wall Street Journal reports that earlier this year, Disney bosses told staffers that the company will no longer accept advertisements from rival streaming services. Sources said that the policy was later reversed when Disney was able to find “a compromise with nearly every company,” with one notable exception: Netflix. “In making its decision, Disney evaluated whether it had a mutual business or advertising relationship with the companies,” the WSJ reports. But because Netflix doesn’t show advertisements before, during, or after their programming — and they’ve made it clear that they don’t plan to change that policy — the Walt Disney Co. is reportedly skeptical that they can benefit from the partnership, particularly as they prepare to launch competitor service Disney+ in November.
According to The Wall Street Journal, Netflix advertisements will be banned across most Disney-owned networks; however, “ESPN will continue to accept Netflix ads.” Plans for other networks within the vast portfolio, including the newly-acquired Fox properties, were not specified.
Disney told the WSJ that the streaming boom has created “many more entrants looking to advertise in traditional television, and across our portfolio of networks.” In response, the company reversed its all-around ban on streaming advertisements “to reflect the comprehensive business relationships we have with many of these companies.” Netflix declined to comment on this story, both to Decider and to WSJ.

While Disney seems to have made its mind up about Netflix, industry heavy-hitters are debating other ways of competing with the streaming services. 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.”

With regard to the latter suggestion, money doesn’t seem to be an issue for the likes of Netflix, AT&T’s WarnerMedia, and NBCUniversal. Bruell and Vranica report that Netflix spent $99.2 million on U.S. TV ads in 2018, with roughly 13% going to Disney-owned networks (according to ad-measurement firm iSpot.TV). WarnerMedia is reportedly planning to spend $300 million on advertising ahead of its HBO Max launch, while Comcast-owned NBC is expected to spend $100 million on external ads to launch Peacock.

For more on Disney’s ban on Netflix ads, read Alexandra Bruell and Suzanne Vranica Wall Street Journal report.