Disney Says New UK Laws Will Hike Streaming Prices

in Disney, Movies & TV

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Like all huge media companies, Disney has been struggling to figure out a way to make the brave new world of streaming services as profitable as possible. Netflix, Max, Apple TV, Amazon Prime Video, and all the rest have put the Walt Disney Company constantly playing defense when it comes to streaming content, and now it turns out the House of Mouse has to deal with new United Kingdom media laws (per Deadline ).

Clip from 'Frozen' iconic of a Disney theme park personality Credit Disney
Credit: Disney

Disney streaming content (which includes the Marvel Cinematic Universe, Star Wars, Pixar, Indiana Jones, and many more TV shows and films) is some of the world’s most well-known and valuable IP, but a newly introduced UK bill regarding how streaming platforms interact with their subscribers may force the company to raise prices (at least according to Disney itself).

Related: Netflix Policy Effective Immediately as Disney+ and Hulu Remove Content

Given that media companies from Netflix to Disney to Warner Bros are currently scrambling to purge content to save on royalties, crack down on password-sharing, and appeal to the dwindling pool of potential subscribers, that’s a pretty big deal.

New UK Bill Requires Increased Reminder Notices

The UK Parliament’s newly introduced “Digital Markets, Competition and Consumers Bill” will (among other things) require streaming subscribers to be reminded every six months that they are still, in fact, subscribed to services. The company says Disney streaming services already does send subscription reminders to its customers, and basically that the UK needs to mind its own business.

Photo credit: Disney

Specifically, Disney submitted a statement to the House of Lords Communications and Digital Committee saying “[O]ur practice of providing timely and clear notice of the recurring fee… should obviate the need for mandated renewal notices.” That is, since it already provides notices of its own choosing, it should not be regulated to do so.

Disney Says Customers Ignore Excessive Communication

The statement goes on to say that streaming subscribers will likely ignore mandated messages, so their own streaming platform should not be micro-managed by the UK government. Instead, the company suggests that these laws be specifically targeted toward companies with a track record of deceptive subscription practices instead of them, so basically “what about those guys over there? They seem shady.”

Han Solo in Star Wars
Credit: Lucasfilm

Disney Claims Trial Periods May Cause Price Hikes

Most interestingly of all the kerfuffle around UK Disney streaming, the company seems to imply that another element of the bill could cause them to increase subscription prices. Another proviso in the bill would create a “cooling-off” period in which subscribers could cancel service within a two-week period and not be charged (similar to the free trial periods offered by many platforms like Netflix, Apple TV+, and Disney Plus).

Related: Netflix Reveals Plan to Crack Down on Password Sharing In the United States

We would not go so far as to call this an implicit threat by Disney, but it’s clear that the company does not want to be forced by the UK to do anything it doesn’t already feel like doing. We’ll just have to see if competition for Warner Bros Discovery, Amazon Prime, and all the rest will make them budge.

 

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