Disney (DIS - Get Report) will no longer allow streaming rival Netflix (NFLX - Get Report) to advertise on any of its platforms, according to a Wall Street Journal report, as the battle for streaming subscribers continues to heat up.
Disney shares were up 0.8% to $129.18 on Friday morning, while Netflix shares were rising 0.1% to $268.45.
The ads will be banned across Disney's entertainment networks and platforms, which include ABC and the Disney Channel, according to people familiar with the matter. Disney and Comcast (CMCSA - Get Report) , which is using Sky TV to expand streaming offerings in the EU, are set to spend a considerable amount of money on advertising to lure in streamers over the next few years.
Disney, which is setting up Disney Plus and a streaming bundle including Hulu, had sent an internal notice to employees saying the company would not agree to any advertising deals with other streaming players. Disney pulled back from that position after taking into account other advertising relationships it had with some of those players, but it continued to exclude Netflix.
Netflix spends over $1 billion on advertising yearly.
In a few weeks, Apple (AAPL - Get Report) is set to launch Apple TV Plus its own streaming service which intends featuring original content. While Apple won't initially have that many new shows or movies on the platform, some expect the company to leverage its considerable cash position to build up its content library.
The combination of Disney's streaming offerings and the impending threat of Apple TV Plus and Comcast's plans has made some Netflix investors wary. One Netflix analyst thinks that no only is Netflix's huge content library is enough to stave off competition, but that streamers will use multiple services at once.
In another indication the so-called "streaming wars" are intensifying, Disney CEO Bob Iger recently removed himself from Apple's board, as the two companies become entangled in competition.