Disney is developing a number of new features that the company hopes will ensure that Disney Plus, Hulu and ESPN subscribers spend much more time watching Disney movies and TV shows, according to a new report.
According to the Wall Street Journal (paywall), Disney is following in Netflix’s footsteps and is aiming to increase what it calls user engagement over the next six months. In short, the more time we spend on the service, the less likely we are to switch to rivals, and it also increases the amount of advertising opportunities.
So what could these features be? As we previously heard in a report back in April, one of them could include new channels dedicated to specific shows or franchises like The Simpsons or the Marvel Cinematic Universe. Apparently these “live” channels could play an entire series or franchise from start to finish.
Other features that could be coming soon, according to the report, include a “more personalized content recommendation algorithm,” which will provide “custom promotional images for new shows and movies” based on your viewing history and, less excitingly, email notifications to remind you to finish a show you abandoned halfway through.
It appears that the Mouse House is considering multiple options for these new features, including ad-supported, ad-free, and sponsored content.
Churn baby churn
For streaming services, reducing churn (the number of subscribers who cancel their subscriptions or switch to a competitor) is a top priority. Streamers spend huge sums of money on attracting new subscribers, and the longer those subscribers stay, the more effective that spending is.
a 2021 Deloitte Report It’s estimated that the cost per new subscriber for streaming services is around $200 per signup, and that cost represents many months of subscription fees – so someone signing up for services like The bear (above), watching the stream in one go and then stopping again is a loss for the streamer.
One way streamers have chosen to combat churn is by bundling with other services. It’s something Disney has done as well—there’s a Disney+, Hulu, Max bundle designed to take on Netflix, for example. But the WSJ says that driving engagement is now a top priority.
According to the report, Disney executives are studying how we use its streaming service and tagging us as “Disney+ dominant” or “Hulu dominant” based on our usage; the company has found that by targeting Hulu content to “Disney+ dominant” viewers, they can significantly increase the amount of Hulu shows those subscribers watch. Disney reportedly plans to do the same with Max viewers who join through the aforementioned bundle.
According to the obligatory “people familiar with the matter,” Disney is considering moving away from human creation and toward “a more Netflix-like” model that uses user data to power recommendation algorithms. Disney CEO Bob Iger has previously said he sees personalization systems as a key way to reduce marketing costs.
Whatever Disney has planned, we won’t have to wait long to experience it: According to the WSJ, some of the new features could be available within a few months.