Disney+: Subscription price could rise as Disney raises concerns over UK laws
Disney+ could raise its subscription price over UK law concerns.
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The subscription rate for Disney+ could rise over UK law concerns. Under new UK laws, Disney+ to remind its customers about their subscription every six months.
Currently, Disney+ subscribers can sign up to the streaming platform and remain subscribed until they choose to cancel. However, the new UK law would require streaming sites to send "reminder notices" to customers to remind them of their subscription.
The government said the legislation would "ensure consumers get a fair deal”, while Disney said that the streaming service already provides "timely and clear notice" of its fees. At the time of writing, Disney+ subscription prices are priced at £7.99 per month, or £79.90 for a year.
Deadline reports Disney said the UK government’s draft Digital Markets, Competition and Consumers Bill was attempting to "micro-manage" the way streaming sites interact with their customers.
Disney has argued it currently makes it easier for subscribers to cancel their contract than to actually subscribe. The company also suggested email reminders could have the opposite effect because it will make subscribers more likely to ignore the messages they receive.
In a submission to the Lords Communications and Digital Committee, Disney said: "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.
"At a minimum, it obviates the need for the micro-managing of how and when these notices should be sent, which is a serious flaw in the draft bill that fails to recognise that it could lead to consumer’s ignoring notices."
The company has now requested the UK government to limit the amount of reminder notices to sectors that have a track record of "attempting to trap their consumers".
This "obviously does not apply to SVODs [subscription videos on demand]," it added.
In addition, Disney raised concerns about the legislation’s effort to introduce a 14-day cooling-off period for subscription services.
Disney has argued this will allow consumers to "game the system" by subscribing, consuming all the content they want in two weeks, and then cancelling their membership. It added that such behaviour could result in price rises 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.
A Department of Business and Trade spokesperson told BBC News: “The Digital Markets, Competition and Consumers Bill aims to boost competition in online markets currently dominated by a small number of firms - delivering on the government’s commitment to grow the economy through increasing consumer choice and accelerating innovation.
"Our new bill will ensure consumers get a fair deal while not overburdening businesses with regulatory barriers."
How to get Disney+
You can sign up for the streaming service via the Disney+ website. There are two payment options available with customers being able to choose between £7.99 a month or £79.90 a year
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