The news: Streaming may be a sore spot for Disney’s overall business, which has experienced a stock drop of about 14% so far this year. We expect US adults’ time spent with Disney+ will increase by just 1 minute YoY in 2027.

To combat those concerns, the entertainment giant is planning an overhaul of the Disney+ platform under CEO Josh D’Amaro.

• Disney+ will add features like a stronger recommendation algorithm and vertical video offerings to compete with Netflix and YouTube and boost time spent, per Bloomberg. This is in addition to the free Disney+ tier that it’s reportedly considering.
• It’s also including content from Hulu and ESPN and increasing investment in local programming in international markets to add a sign-up incentive for audiences abroad.

Outside of connected TV (CTV) viewing, Disney is continuing its plan to turn Disney+ into a super app that unites theme park ticket sales, merchandise purchases, streaming, games, and short-form video.

Zooming out: Incorporating stronger discovery tools and social-style video shows how Disney is competing on engagement.

• Its super app ambitions mirror a larger industry shift where media companies are trying to own more of the customer relationship by offering entertainment, commerce, and even travel offerings in a single destination.
• The platform needs to find fresh formats—such as vertical or short-form video—and a stronger ecosystem design to keep users inside the app.

Implications for marketers: Amid this inflection point in the streaming wars, powerful recommendation engines, deep user data, broad ecosystems of services, and competitive streaming costs will be among the strongest customer retention tools.

A more engaging Disney+ ecosystem could give richer first-party data to marketers and boost ad inventory. If the company succeeds at increasing time spent and connecting viewing behavior with purchases, travel, and gaming, it will strengthen its ability to compete with platforms like YouTube, Netflix, and Amazon for both consumer attention and advertising budgets.