Technology

Netflix weighs always-on channels as engagement concerns grow

The company is also considering streaming bundles as it looks for ways to keep viewers watching, according to The Wall Street Journal.

Maya Lindqvist

By Maya Lindqvist · Senior Technology Correspondent

2 min read

Netflix weighs always-on channels as engagement concerns grow
Photo: The Verge

Netflix is considering always-on channels that would play selected shows and films in a continuous stream, according to The Wall Street Journal. The discussions point to a broader effort to keep viewers engaged as the company sees signs that watch time is weakening, the Journal reported.

The planned format would give subscribers a more passive viewing option than choosing a title from Netflix’s on-demand catalog. According to the Journal, the channels would be built around specific Netflix programming rather than a traditional TV schedule.

The idea would put Netflix closer to services such as Pluto TV and Tubi, which offer constant streaming channels supported by advertising. The Verge noted that those services are free, while Netflix’s ad-supported plan costs $8.99 a month after a recent price increase.

Netflix has found traction with its advertising tier, according to The Verge, and the always-on channel concept would give the company another way to pair ads with programming that users can leave running. The Journal reported that Netflix is examining the option as part of a search for new ways to reverse softer engagement signals.

Bundles are also under review

Netflix is also looking at whether to sell packages that include other streaming services, according to The Wall Street Journal. Rivals already sell similar bundles, including Apple TV and Prime Video, The Verge reported.

Bundling could give Netflix a way to compete for households that are cutting or rotating streaming subscriptions. The Journal reported that the company is weighing the idea alongside always-on channels as it studies how to keep users spending more time inside its service.

The review follows a separate Bloomberg report that Netflix has been trying to understand why some second seasons are seeing sharp drops in viewing. Bloomberg reported that the company has been examining the falloff after first seasons as part of its broader effort to understand audience behavior.

Netflix has also been adding programming that asks less of viewers than scripted prestige series. The Verge reported that the company has recently moved into video podcasts and has added videos from digital media brands including BuzzFeed and Condé Nast.

Those additions fit a pattern of content that can be played in the background, The Verge reported. Always-on channels would extend that approach by reducing the need for subscribers to choose a new title each time they open the app.

Netflix spokesperson Adrian Zamora declined to comment, according to The Verge. The Journal did not report a launch date for the channels or bundles, and Netflix has not announced either product.

This story draws on original reporting from The Verge.