Daisy Ridley reprises her role as Rey in “Star Wars: The Rise of Skywalker.”
Disney
Originally promoted as ad-free, Disney‘s upcoming streaming service Disney+ will carry ads for the TV channel Starz, The Verge first reported.
Disney will place a Starz display ad on the login page for both Disney+ and ESPN+ that prompts users to sign up for the Starz service, a Disney spokesperson told CNBC, but those who subscribed before the November 12 launch will not see the Starz ad. But subscribers won’t see any other ads while watching something on Disney+.
The ad highlights the complicated world of licensing as traditional media companies like Disney, AT&T‘s WarnerMedia and Comcast‘s NBCUniversal all prep their respective streaming services with their own shows and movies. For example, earlier this year, NBCUniversal paid $100 million for the rights to The Office, which will leave Netflix in 2021, underscoring the investment these companies are making to build a catalog of content on their services to woo subscribers.
Disney has in the past tapped revenue by signing costly licensing deals with TV channels and streaming services such as Netflix and Starz that allows those companies to show Disney-made movies. That’s why we’ve all been able to enjoy favorites like the “Incredibles 2” and “National Treasure” on Netflix for so long.
With the release of Disney+ next on November 12, the company will have to regain the streaming rights to its most successful shows before they can be included on the platform. Disney licensed the rights for “Star Wars: The Force Awakens” as well as a number of other movies to Starz before Disney announced its streaming aspirations in 2017.
Representatives from Starz were not immediately available for comment.
Disney+ is set to roll out in the U.S. on Nov. 12 for $6.99 per month or $69.99 per year. Subscribers will also have the option to bundle Disney+, ESPN+ and ad-supported Hulu for $12.99 a month.
Disclosure: NBC is part of NBCUniversal, the parent company of CNBC.
