Disney is enhancing its streaming platform Disney+ with a range of new features, including live channels and personalized algorithms, to create a hybrid 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 critical aspect of this goal is boosting “hours per subscriber,” a metric that measures user engagement.
Disney aims to enhance engagement to reduce subscriber churn and increase ad revenue, current and former employees informed the Wall Street Journal.
In March, Disney CEO Bob Iger acknowledged that nearly five years after its launch, the company’s streaming platform still trails behind industry leader Netflix, which is among the few profitable streaming services.
In response, Disney is reportedly working on developing live channels for viewers who struggle with choosing what to watch. Ideas for these channels include streaming movie franchises like the Marvel Cinematic Universe in chronological order or airing episodes of popular series like “The Simpsons.” These channels may feature sponsorships or advertisements.
Recently, Disney has also aimed to transform Disney+ into a more Netflix-like service. The company plans to shift from human-curated recommendations to a personalized recommendation algorithm that uses user data to suggest new content. This includes introducing customized promotional art for new shows tailored to a subscriber’s preferences, a feature Netflix is well-known for.
Additionally, Disney plans to send reminder emails to users who haven’t completed a series.
According to the Wall Street Journal, these new features could be implemented within the next six months.