Disney's new CEO aims to transform Disney+ into a 'super app' to compete with Netflix.

      Disney's new CEO aims to transform its streaming platform into something more than just a site for watching movies. Josh D’Amaro, who succeeded Bob Iger in March, is considering evolving Disney+ into a “super app” that would integrate streaming with theme park tickets, cruise reservations, games, and merchandise, as reported by Bloomberg.

      This ambition is clearly aimed at competition. The report states that D’Amaro aims to position Disney’s direct-to-consumer business as a formidable contender to Netflix, which has transformed from a DVD rental service to the standard for home entertainment over the past decade.

      “Disney+ will develop beyond a conventional streaming service to become the digital core of our company, linking stories, experiences, games, and films in innovative ways,” D’Amaro stated, framing the app as the central hub for all Disney products.

      Currently, the elements he wants to unify are disjointed. Disney operates separate applications for Disney+, the Disneyland resort, and its Cruise Line. A super app would consolidate ticketing, merchandise, gaming, and streaming into a single destination, creating a one-stop shop for Disney enthusiasts.

      The strategy resembles that of Amazon. Disney has long considered a Prime-style membership that combines content and benefits into a single loyalty program, an idea explored by Iger for years and tested in limited form in the UK, though it has never become central to the company’s strategy.

      D’Amaro is revisiting this idea. Internal presentations have included the concept, according to Bloomberg, although it is still in the early stages, meaning the super app is more of a vision than a developed product at this time.

      In the short term, the situation is complicated. Disney is still in the process of fully integrating Hulu into Disney+, a challenging technical and licensing endeavor that has proven more difficult than just changing a logo. Any larger app initiative must await the resolution of these foundational issues.

      Streaming is finally becoming profitable. Under D’Amaro, Disney's direct-to-consumer segment showed improved subscriber and profit figures that surprised Wall Street earlier this year, enhancing his credibility to propose ambitious new ideas.

      The broader industry is undergoing a transformation. The focus of streaming has shifted from acquiring subscribers to achieving profitability, with ad-supported tiers, price hikes, and password enforcement becoming standard practices, all of which Disney has largely adopted.

      Netflix continues to be the target and standard for comparison. It leads viewer preferences in various markets, supported by its extensive scale and personalization, although Disney has previously addressed this with bundled offerings of ESPN+, Hulu, and Disney+.

      The aspiration for a super app is not exclusive to Disney. Companies around the world have pursued the concept of an all-in-one app, but few, aside from China's WeChat, have succeeded, as bundling unrelated services often does not enhance them.

      However, Disney’s approach has a clear rationale. Unlike a bank or messaging app that adds features, Disney provides experiences that naturally complement each other in a consumer's life—films, toys, parks, and cruises—making the consolidation less of a stretch.

      The challenge lies in attempting to do too much simultaneously. An app that streams content, sells tickets, runs games, and offers merchandise presents a considerable undertaking to develop and manage, and Disney's previous app initiatives have encountered difficulties due to this complexity.

      Regulatory concerns also add complexity. Streaming is increasingly being regulated as broadcasting in some markets, and a super app linking viewing and spending could attract scrutiny regarding data and competition that a simple streaming service might evade.

      For now, this plan signals D’Amaro's vision. He has communicated his aspirations for streaming, drawing from Netflix’s strategy of maximizing revenue per viewer, while banking on Disney’s unique assets that Netflix cannot replicate: the parks, cruises, and beloved characters that people are willing to spend to experience.