Disney Challenges UK Government Over Consumer Focused Streaming Bill

Disney is now challenging the United Kingdom over a proposed bill that seems to focus on the streaming consumer and not the company. Of course, Disney doesn’t like the way this is going and claims it may cause price hikes for the Disney+ subscriber as they are afraid customers will use the wording of the bill to “game” the service and screw Disney out of money.

What is going on?

According to Deadline, Disney is upset over a newly drafted Digital Markets, Competition, and Consumers Bill. Disney claims that the UK is trying to “micro-manage the way subscription streamers interact with their customers.”

What does the bill say?

The current draft favors consumers over streamers and wants the following:

• Reminder notices are to be sent to customers every six months to ensure they are aware they are subscribed and paying for the service.
• A 14-day period for customers. If they don’t want to keep the service, they can withdraw their subscription during that two-week period and not pay for the service.

Disney doesn’t want either of those things to happen because they feel it will cost them more money. While the first point doesn’t seem like it should be an issue and I would argue that they should mandate this in the United States as well.

Of course, Disney disagrees with both points and sent this to the Lords Communications and Digital Committee:

“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 argument here seems weak. If Disney already gives notices before billing, then they should not have an issue with a bi-annual reminder as well. If Disney’s argument is that one notice every six months could be ignored, why do they feel their “timely and clear” notices of a recurring fee, are not ignored by customers?

To the second point, Disney is arguing that consumers will subscribe, watch two weeks’ worth of content and then cancel with a full refund. In that regard, they have a point.

Disney argues it could cause a price hike for customers that stay subscribed:

“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.”

If the demand goes down, Disney argues they will have to squeeze more money out of the ones that will pay. That is something they already do now at the theme parks.

Disney may have a point on the second issue. However, they raise prices for Disney+ and Hulu subscribers often. Usually citing similar reasons about content. Hulu with Live TV has practically doubled in price since Disney took over the controlling interest. Disney+ is set for even more price hikes in the future.

This will be interesting to watch.

What do you think? Comment and let us know!

Image Source: WikiMedia Commons