In a strategic pivot announced at CES 2026 during its Global Tech & Data Showcase, Disney revealed plans to introduce vertical video experiences on Disney+ throughout the year, marking a significant shift toward mobile-first, short-form content. This move aims to boost daily engagement, transform the platform into a "must-visit daily destination," and capture the attention of younger audiences — particularly Gen Alpha — who have grown up immersed in AI tools and interactive media.
Disney+ executive vice president of product management Erin Teague emphasized the generational shift: "They are the first AI-native generation, and the interesting thing is, they don’t see stories as things that happen to them. Instead, they expect more agency.
They expect to interact with entertainment." Unlike passive viewing of long-form movies or series, these users pause to debate theories, research backstories on their phones, remix clips, and share with friends. Vertical video — optimized for smartphones in a portrait orientation — aligns perfectly with fragmented, on-the-go consumption habits popularized by TikTok, Instagram Reels, and YouTube Shorts.
The rollout, building on the successful "Verts" feature launched in the ESPN app in August 2025, will feature a personalized, dynamic feed of short-form clips across entertainment, news, sports, and more. Content possibilities include original short programming, repurposed social media clips, refashioned scenes from existing shows or films, and potentially AI-enhanced material.
Teague noted that "everything’s on the table," with the experience evolving over time to feel native rather than disjointed. The U.S. launch is slated for later in 2026, following ESPN's model of algorithmically curated carousels that drive frequent app opens.
This isn't just about format—it's about monetization in a changing landscape. Disney is integrating AI deeply into advertising.
A new AI-powered video generation tool allows brands to create high-quality, connected-TV-ready commercials using existing assets and guidelines, with versioning by audience, context, and placement. Tony Donohoe, EVP of ad platforms, demonstrated how the tool puts "the right creative in front of the right viewer at the right time." Early collaborators like Known and Instinct Pet Food are testing it for proof-of-concept spots.
Complementing this is an enhanced Disney Compass Brand Portal, offering unified campaign views, category benchmarks, AI-powered summaries, and integrations with partners like Affinity Solutions, CINT, EDO, Innovid, and VideoAmp. A new "brand impact" metric combines attention, brand health, reach, search, and attribution to help marketers optimize across Disney's ecosystem.
The push reflects broader industry pressures: Disney+ trails rivals in daily active users and time spent, despite strong subscriber numbers. Short-form vertical content drives higher frequency — users return multiple times daily for quick hits—boosting ad impressions and retention. Gen Alpha (born ~2010 onward, now ages ~0-16) is particularly receptive; more than half of teens in this cohort experiment with AI-generated images and videos, per industry insights.
Disney's $1 billion investment in OpenAI (late 2025) and licensing deal for Sora further underscore its AI embrace. Fan-inspired generative videos using over 200 Disney characters could appear on the platform, curated for safety and alignment. Executives frame AI as an "accelerator" that empowers interactivity while respecting human creativity and protecting users—not a replacement for storytelling.
Critics worry this dilutes Disney's premium brand, turning a cinematic streamer into another "slop factory" chasing TikTok trends. Yet the strategy positions Disney+ as a comprehensive portal: long-form for immersion, vertical for habit-building, AI for personalization and ads. As mobile viewing surges—Gen Z and Alpha overwhelmingly prefer phones over TVs — Disney bets this hybrid approach will secure loyalty and revenue in an AI-driven era.
By leaning into vertical formats and intelligent tools, Disney isn't just adapting—it's redefining what streaming means for the generation that expects entertainment to respond, remix, and evolve alongside them. The full impact will unfold through 2026, but the direction is clear: mobile, interactive, and AI-enhanced.
Also read:
- My 2016: Why We're Obsessed with Trends and How Economics Fuels the Nostalgia Wave
- The Awkward Turtle Exit: Why VCs Cringe at $150M-$300M Acquisitions
- The Great Crypto Swindle: How the Whole Damn Thing is One Giant Rip-Off
Thank you!
