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Disney+ Warns Of Price Hikes If UK Streamer Laws Stick

A Disney+ price hike could be coming if new UK laws go into effect that will require it to send contract renewal notices to Disney+ users and allow customers to “game” the streaming service without paying.

The U.S. media giant said the UK government’s draft Digital Markets, Competition and Consumers Bill was attempting to “micro-manage” the way subscription streamers interact with their customers.

In its current form, the legislation will require streamers to send “reminder notices” to customers every six months to make them aware that they remain subscribed.

Disney said that it already provides “timely and clear notice” of a recurring fee and makes it easier for users to cancel their contract than subscribe in the first place.  The company added that increased email notices could actually have a counterproductive effect because it will make users more likely to ignore the messages they receive.

Disney has voiced their concerns over the issue saying:

“The combination of the market imperatives, consumer preferences, our practice of providing timely and clear notice of the recurring fee and the ease of terminating the agreement should obviate the need for mandated renewal notices.”

Disney also raised concerns about the Digital Markets, Competition and Consumers Bill’s effort to introduce a 14-day cooling-off period for digital subscription services. This would allow users to withdraw their subscription within two weeks and not pay for the service.

Disney said this would empower people to “game the system” by subscribing, bingeing all the content they want to watch, and then canceling. Disney warned that this could result in price hikes for loyal customers.

“This would allow these bad actors to benefit from our service without compensation to the detriment of the vast majority of good actors as it could likely result in a price increase given the reduction in the subscriber base and the high cost of producing high-quality content,” it said.

Source: Deadline

Michelle Beck
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