Disney is updating its streaming platform Disney+ with new features, including live channels and personalized algorithms, aiming to make it resemble a combination of traditional TV and Netflix.
These updates are part of Disney’s strategy to make the streaming service profitable by the end of its fiscal year in September. A crucial aspect of this plan is increasing “hours per subscriber,” which measures user engagement.
Disney hopes that by boosting engagement, it can reduce churn and enhance ad-generated revenue, as reported by the Wall Street Journal.
In March, Disney CEO Bob Iger acknowledged that almost five years after its launch, the streaming platform is still trailing behind the industry leader Netflix, which is one of the few profitable streaming services.
To address this, Disney is developing live channels to help viewers decide what to watch more easily. Potential channel ideas include streaming movie franchises like the Marvel Cinematic Universe in chronological order or playing episodes of popular series like “The Simpsons.” These channels could be sponsored or feature ads.
In addition, Disney has been focusing on making Disney+ more akin to Netflix by shifting from human-curated recommendations to a personalized algorithm that uses user data to suggest shows and movies. The company also plans to introduce customized promotional art for new shows tailored to a subscriber’s preferences, a technique Netflix is well-known for.
Disney will also send reminder emails to users who haven’t completed a series.
According to the Wall Street Journal, these new features could be introduced within the next six months.