- Disney Raises Concerns Over UK’s Subscription Renewal Reminder Laws
- Company Claims Proposed Legislation Micromanages Streaming Services
- Disney Warns of Potential Negative Impact of Email Reminders
Disney is concerned about new UK laws requiring it to remind its consumers every six months about their streaming subscriptions.
Currently, users subscribe to Disney+ and remain subscribed until they decide to deactivate.
However, the new legislation would require broadcasters to send “reminder notices” to subscribers to ensure they remain subscribed.
Disney stated that it provides “timely and clear notice” of its fees.
According to Deadline, the company stated that the UK government’s proposed Digital Markets, Competition and Consumers Bill aimed to “micromanage” how subscription streaming services interact with their customers.
Disney argues that it is presently simpler for users to cancel their contract than to subscribe.
“Play the system”
Additionally, the company suggested that email reminders may have a negative impact because users will be more likely to disregard the messages they receive.
Disney stated in a submission to the Lords Communications and Digital Committee, “The combination of market imperatives, consumer preferences, our practice of providing timely and clear notice of the recurring fee, and the ease of terminating the agreement should eliminate the need for mandated renewal notices.”
“At the very least, it eliminates the need for micromanaging how and when these notices should be sent, which is a serious flaw in the proposed legislation that fails to recognize that it could result in consumers ignoring notices.”
Disney requested that the government of the United Kingdom restrict reminder notices to industries with a history of “attempting to trap their consumers.”
This “obviously does not apply to SVODs [subscription videos on demand],” the statement continued.
Disney also expressed concern regarding the bill’s proposed 14-day cancellation period for digital subscription services.
This, according to the company, will enable consumers to “game the system” by subscribing, devouring all the content they desire in two weeks, and then canceling their subscription.
Disney stated that such conduct could lead to price increases for devoted customers.
“This would allow bad actors to benefit from our service without compensation, to the detriment of the vast majority of good actors, as it would likely result in a price increase due to the decline in subscriber base and the high cost of producing high-quality content,” the statement read.
