Disney is set to update its streaming platform, Disney+, with a host of new features, including live channels and algorithms, making it resemble a combination of traditional TV and Netflix.
The updates are part of Disney’s strategy to make the platform profitable by the end of its fiscal year in September. A primary focus for achieving this goal is to boost “hours per subscriber,” a metric indicating user engagement.
Disney aims to increase engagement to reduce churn and enhance ad-generated revenue, according to current and former employees who spoke to the Wall Street Journal.
In March, Disney CEO Bob Iger acknowledged that nearly five years after its launch, Disney+ still trails behind the industry leader Netflix, which is among the few streaming platforms turning a profit.
To address this, Disney is reportedly developing live channels for indecisive viewers. Potential channel concepts include streaming movie franchises like the Marvel Cinematic Universe in chronological order or broadcasting episodes of popular series such as “The Simpsons.” These channels could possibly feature sponsorships or advertisements.
Recently, Disney has also been focused on making Disney+ more akin to Netflix, as reported by the Wall Street Journal.
The company plans to shift from human-curated recommendations to a personalized recommendation algorithm that leverages user data to suggest new shows and movies. Additionally, Disney intends to introduce customized promotional artwork for new shows tailored to a subscriber’s preferences, a feature Netflix is well-known for.
Disney also plans to send reminder emails to users who have not completed a series.
According to the Wall Street Journal, these new features could be implemented within the next six months.