Disney+ Struggles to Retain Viewership, Launches New Channels to Boost Engagement
Disney is taking steps to combat declining viewership on its flagship streaming service, Disney+, with the introduction of four new channels aimed at increasing engagement and appealing to a wider audience.
The new channels include:
- Hallowstream: A seasonal channel dedicated to spooky and family-friendly Halloween content.
- Hits and Heroes: Action-packed stories from the worlds of Disney, Marvel, and Star Wars.
- Throwbacks: A nostalgic channel featuring beloved pop-culture classics.
- Real Life: A collection of documentaries and biopics exploring real-world stories.
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These additions come as Disney+ faces challenges in retaining its audience, with its share of TV viewing falling from 5.6% in July 2023 to 4.8% this past July. This decline stands in contrast to the growth experienced by other streaming services like YouTube, Netflix, Peacock, and Tubi during the same period. One factor contributing to this dip in viewership could be the perceived lack of fresh and engaging content on Disney+ compared to its competitors.
While Disney boasts a vast library of beloved classics, the platform has faced criticism for its slower pace of new releases and its focus on franchise-driven content.
CEO Bob Iger, upon his return to Disney two years ago, tasked division heads with revitalizing the company’s streaming business, which had incurred significant losses. While the team has managed to stabilize the business and achieve an operating profit last quarter, the focus now shifts to recapturing lost subscribers and boosting engagement among existing ones.
Recent initiatives include integrating Hulu content within the Disney+ app and plans to incorporate ESPN by the end of the year. These moves reflect a strategy to offer a more comprehensive and diverse range of content to attract and retain viewers.
“Clearly we are in a world where we are responsible for not just delivering excellent content but technical innovation,” said Dana Walden, Chairman of Disney General Entertainment Television. “We are experimenting in a way we previously didn’t have the flexibility to do.”
While these new channels and features represent a step toward enhancing the Disney+ experience, it remains to be seen whether they will be enough to reverse the trend of declining viewership and recapture the platform’s initial momentum. The streaming landscape is increasingly competitive, and Disney will need to continue innovating and delivering compelling content to remain a major player.
Source Bloomberg
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