Amzon Disney Advertising Dispute

Amazon and Disney are in the middle of a business dispute over ad revenue that might keep Disney+ from being available on Amazon’s Fire TV when the new streaming service launches in November. In the simplest terms, Amazon wants the ability to sell a good chunk of the advertising space on the rest of Disney’s ad-supported apps in order for Disney+ to be made available on Amazon’s Fire TV devices. But Disney isn’t too keen on giving up that advertising revenue to Amazon.

The Wall Street Journal has the details on the Amazon Disney advertising dispute. Basically, Amazon is demanding to sell a percentage of advertising on other apps besides Disney+. Since the new streaming service won’t have any advertisements at all, Amazon wanted to use this opportunity to strike a deal to make more advertising money from the rest of Disney’s apps that will still run advertising.

Reportedly, Amazon is asking for the ability to sell 40% of the ads running in Disney’s other apps, but the House of Mouse doesn’t like that number. Supposedly, the initial 40% offer is what Amazon traditionally goes for when making a play for advertising revenue, but negotiations usually bring it down to 30% or 20%. Believe it or not, there used to be a time when Amazon didn’t ask for any advertising revenue from companies who had apps on their devices.

It seems like Disney is really playing hardball with a lot of revenue negotiations lately. Only just recently did they figure out new temporary terms to share Spider-Man and keep him in the Marvel Cinematic Universe, and again, the hold-up came down to how much money Disney was getting during the deal. We understand that this is show business, but we’re hoping this isn’t going to become the new staple for dealing with Disney. Considering the heated negotiations that usually take place between cable provides and TV channels to ensure certain channels are offered in specific areas, this seems like par for the course.

As it stands, Amazon and Disney have a lot to gain from each other. Disney needs to ensure Disney+ is available to the most people on the most devices and Amazon wants to be able to provide such a high-demand service to their customers that consume entertainment on their devices. It’s likely that these two will come to an agreement, but it remains to be seen how it will turn out.

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