Disney is updating its streaming platform Disney+ with new features, including live channels and personalized algorithms, to create a mix of traditional TV and Netflix.
These updates are part of Disney’s strategy to make the platform profitable by the end of its fiscal year in September. Central to this goal is increasing “hours per subscriber,” which measures user engagement.
Disney aims to boost engagement to reduce churn and increase ad revenue, according to current and former employees.
In March, Disney CEO Bob Iger acknowledged that nearly five years after its launch, the streaming platform is still trailing behind industry leader Netflix, which is profitable.
To address this, Disney is developing live channels for viewers who struggle with choosing what to watch. Ideas include streaming movie franchises like the Marvel Cinematic Universe in chronological order or airing episodes of popular series like “The Simpsons.” These channels could be sponsored or contain ads.
Recently, Disney has been working on transforming Disney+ into a more Netflix-like experience. This involves moving away from human-curated recommendations to using a personalized algorithm based on user data to suggest new shows and movies. The company also plans to introduce customized promotional art for new content tailored to a subscriber’s preferences, a feature Netflix is known for.
Additionally, Disney will send reminder emails to users who haven’t finished a series.
According to the Wall Street Journal, these new features could be introduced within the next six months.