The Walt Disney Company, about a month away from debuting its premiere streaming television service Disney+, will no longer run advertisements for Netflix on any of its television entertainment properties, The Wall Street Journal reported on Friday.
The decision from Disney not to allow advertisements for Netflix marks a wrinkle for both established and upstart streaming television services trying to woo new subscribers to their services.
Linear television networks have long run ads for streaming services, and Netflix has been a reliable big spender for TV spots, even as linear ratings have continued to decline as consumers shift their attention to Netflix and other OTT viewing.
Nearly every major streaming service ran ads during last month’s Emmys broadcast, for example, with Disney+ landing the first position in the night’s first ad break.
As traditional media companies get into the streaming space, though, the calculus to accept ads from now-direct competitors could change.
Disney, which owns the television properties ABC and the Disney Channel, had initially planned to prevent all rival streaming services from running ads on its properties before it reversed course for every company—save Netflix—according to WSJ.