Ladies and gentlemen, if you’re curious about the future of streaming, look no further than Netflix. Even after 17 years since its transition from a DVD mail subscription service to a streaming giant, Netflix continues to set the gold standard for the industry. Disney CEO Bob Iger even acknowledged Netflix’s prowess, attributing much of its success to its exceptional user interface (UI).
In a world overflowing with content, Netflix has mastered the art of keeping viewers engaged. Their secret? A digital experience so well-designed that it keeps users loyal, logged in, and constantly watching. Steve Johnson, Netflix’s vice president of design, mentioned to Fast Company earlier this year that discovery is the key challenge they obsess over.
Connecting viewers with the right content and building trust in their recommendation engine is everything for Netflix. Disney has certainly been paying attention. According to The Wall Street Journal, Disney, which owns Disney+, Hulu, and ESPN+, is planning to roll out several UI feature updates within the next six months. These updates include a more personalized content algorithm and promotional art for shows tailored to viewers’ habits, much like Netflix’s strategy.
The business goal here is clear: reduce churn. High cancellation rates are a major hurdle for streamers trying to turn a profit, but Netflix has managed to figure it out better than most. While competitors like Paramount+, Peacock, Max, and Apple TV+ see monthly churn rates around 7%, Netflix boasts the industry’s lowest rate at less than 4%, according to subscription analytics company Antenna. Disney+ and Hulu’s churn rates sit between 4% and 5%, but Disney aims to lower these numbers.
By now, Netflix expects its design to be imitated. This has already happened with its logo, and Netflix co-CEO Greg Peters noted that after his company updates its UI, competitors often follow suit within 18 to 24 months. Some take longer, but eventually, they all align with Netflix’s innovations.
While Disney is keen on adopting Netflix’s data-driven recommendation approach over human-curated content suggestions, it’s also developing its own concepts. According to The Journal, this includes ideas like pop-up live channels that air themed playlists, such as the entire Marvel Cinematic Universe or every episode of The Simpsons. Additionally, Disney plans to integrate recommendations across its streaming platforms, suggesting Hulu shows to Disney+ viewers and vice versa.
Iger described Disney’s future streaming strategy as “more unified” during a February earnings call, predicting that these changes will lead to “higher engagement, lower churn, and greater advertising potential.” In essence, Disney’s streaming experience might soon feel a bit more like Netflix’s.
So, folks, as Disney gears up to enhance its streaming services, all eyes are on Netflix’s tried-and-true methods. It’s a fascinating time in the streaming world, and we can’t wait to see how these changes unfold!
