Netflix is reportedly considering launching always-on live television channels as the streaming company explores new ways to increase viewer engagement and expand its advertising business.

According to The Wall Street Journal (WSJ), the proposed channels would stream content continuously, allowing subscribers to tune in at any time rather than selecting individual films or television series on demand. The report said the move would offer viewers a traditional television-style experience alongside Netflix's existing streaming service.

If introduced, the live channels would place Netflix in more direct competition with free, advertising-supported streaming platforms such as Pluto TV and Tubi. The report noted that live programming could also strengthen Netflix's advertising business, as viewers are generally less able to skip commercials during live broadcasts.

The WSJ also reported that Netflix is exploring subscription bundles similar to those offered by Apple and Amazon. Citing people familiar with the matter, the newspaper said Peacock is among the streaming services being considered as a potential partner.

The reported initiative follows a series of efforts by the company to increase user engagement. In recent months, Netflix has experimented with short-form video, video podcasts and a gaming app for children as it seeks to attract and retain viewers.

Earlier this week, Bloomberg reported that Netflix had become increasingly concerned about declines in audience numbers between the first and second seasons of many of its original series, highlighting challenges in sustaining long-term viewer interest. 

According to Nielsen, the market research and data analytics firm, Netflix accounted for 7.8 percent of total U.S. television viewing in April. Separately, Variety reported on June 10 that Netflix is in discussions to acquire Letterboxd, the social platform for film enthusiasts.