Disney Warns UK Subscription Laws Could Lead to Price Hikes
Disney Warns UK Subscription Laws Could Lead to Price Hikes

Disney has expressed concerns over proposed UK legislation that would require streaming services to send reminder notices to subscribers every six months. The company argues that the draft Digital Markets, Competition and Consumers Bill attempts to 'micro-manage' customer interactions and could have unintended consequences.

In a submission to the Lords Communications and Digital Committee, Disney stated that it already provides 'timely and clear notice' of fees and makes cancellation easier than subscription. The company warned that mandated reminders might cause users to ignore messages, undermining their effectiveness.

Disney also criticised a proposed 14-day cooling-off period for digital subscriptions, suggesting it could allow 'bad actors' to consume content and cancel without payment. This, Disney argued, could force price increases for loyal customers to offset revenue losses.

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The company requested that the government limit reminder notices to sectors with a history of trapping consumers, which it said does not apply to subscription video-on-demand services. Disney currently charges £7.99 per month or £79.90 annually for its UK service.

A Department of Business and Trade spokesperson defended the bill, stating it aims to boost competition and ensure consumers get a fair deal without overburdening businesses. The legislation is part of the government's commitment to grow the economy through increased consumer choice and innovation.

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