Disney is in the process of updating its streaming platform Disney+ with a range of new features, including live channels and advanced algorithms, aiming to create a fusion of traditional TV and Netflix elements.
These updates are part of Disney’s efforts to make the streaming platform profitable by the end of its fiscal year in September. A crucial component of this strategy is increasing “hours per subscriber,” a key metric that measures user engagement.
Disney anticipates that by enhancing viewer engagement, it can reduce churn and boost ad-generated revenue, according to current and former employees who spoke with the Wall Street Journal.
In March, Disney CEO Bob Iger acknowledged that almost five years after its launch, the company’s streaming platform still trails behind the industry’s leader, Netflix. Unlike many other streaming platforms, Netflix is one of the few that is turning a profit.
In response, Disney is reportedly developing live channels for users who struggle to decide what to watch. These channels could include ones that stream movie franchises like the Marvel Cinematic Universe in chronological order or channels that play episodes of popular series like “The Simpsons.” These channels might potentially be sponsored or include advertisements.
Recently, Disney has been working on transforming Disney+ into a more Netflix-like experience, as reported by the Wall Street Journal.
The company plans to shift away from human-curated recommendations and rely more on a personalized recommendation algorithm that utilizes user data to suggest new shows and movies. Additionally, Disney plans to introduce customized promotional art 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 finished a series.
According to the Wall Street Journal, these new features could be rolled out within the next six months.