Disney is in the process of updating its streaming platform, Disney+, with a roster of new features, such as live channels and advanced algorithms, creating a blend of traditional TV and Netflix styles.
These updates are part of Disney’s strategy to make the platform profitable by the end of its fiscal year in September. A crucial element of this plan is boosting “hours per subscriber,” which measures user engagement.
Disney aims to increase engagement to reduce churn and enhance ad-generated revenue, according to current and former employees cited by the Wall Street Journal.
In March, Disney CEO Bob Iger acknowledged that nearly five years post-launch, the company’s streaming platform is still behind the industry leader, Netflix, which is one of the few profitable streaming platforms.
To address this, Disney is reportedly developing live channels for viewers who struggle with content selection. Possible channel ideas include streaming movie franchises like the Marvel Cinematic Universe in chronological order or airing episodes of popular series like “The Simpsons.” These channels might be sponsored or feature ads.
Additionally, Disney is shifting Disney+ to more closely mimic Netflix’s experience, according to the Wall Street Journal.
Disney plans to move away from human-curated recommendations in favor of a personalized recommendation algorithm that uses user data to propose new shows and movies. The company also intends to introduce customized promotional art for new content tailored to a subscriber’s preferences, a feature that Netflix has popularized.
Furthermore, Disney plans to send reminder emails to users who haven’t completed a series.
According to the Wall Street Journal, these new features could debut within the next six months.