Disney Objects To New United Kingdom Streaming Bill
Disney’s legal team in the United Kingdom is publically opposing new legislation that they say shows that the UK government is trying to “micro-manage” streaming services.
The proposed law would fall under the Digital Markets, Competition and Consumers Bill. The new legislation would require streamers to send customers a reminder email every six months, informing them that they are still subscribed and paying for that streaming service.
Photo Credit: AP Photo/Richard Drew, File
While a small inconvenience for streamers like Disney, the reminders would likely be beneficial for customers. A recent report estimated that 47% of American customers are currently subscribed to a streaming service they no longer use.
A Bigger Problem
Another section of the bill would likely cause more problems for Disney. This section stipulates that streaming services must give customers a 14-day window, during which they can be refunded their subscription money if they choose not to continue subscribing.
Source: techhive.com
Disney says that such a provision would allow users to sign up, watch a specific title within the 14-day window, and cancel before paying.
“[The 14-day cooling off period] 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,” Disney wrote in its protest to the government.
Photo: Newsweek
The behavior of signing up and then canceling a subscription is called “cycling” and has been a concern for streamers. A recent survey found that 69% of users were considering cycling at some point.
Whether or not Disney and other streamers can win their case with elected officials remains to be seen. What is clear, however, is that Disney’s lawyers have their work cut out for them.
Photo:amplitude.com
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