UK to introduce new subscription rules for Netflix and other services in 2026
At the end of 2024, the UK Government confirmed it was consulting on legislation to crack down on ‘subscription traps’, which it defines as instances where consumers are frequently misled into signing up for a subscription – for example, through a “free trial” or a reduced-price offer.
The government’s figures suggests that nearly 10 million of 155 million active subscriptions in the UK are unwanted, costing consumers £1.6 billion a year.
The proposals come in addition to the Digital Markets Competition and Consumer Act, which gained Royal Assent in May 2024.
The new rules, which will come into force in Spring 2026, will force companies to provide clear information before sign up. As well as that, they will also be obliged to send out ongoing subscription reminders, and to offer a 14-day period to cancel after a trial or long-term subscription auto-renews.
The changes will also allow subscribers to exit a subscription generally as easily as they signed up, including being able to cancel online if they signed up online.
A change in how we use subscriptions
With the new rules coming into effect, and the wider consultation taking place, the subscription economy, though still growing handsomely, will come under ever-increasing scrutiny in the coming years, says banking group Barclays.
“Over the past five years, the UK’s use of subscription services has increased dramatically.
“Streaming platforms have potentially enjoyed the most high-profile growth, with likes of Netflix and Disney+ becoming staples for households all over the country, but the change has been felt across the consumer economy,” it said.
Barclays’ 10 Years of Spend report showed that spend on digital content & subscriptions has increased by 47.5% since January 2020. Nine in 10 (88%) consumers are now signed up to at least one subscription, and among this group, the average monthly spend on subscriptions is £50.60.
By the end of 2024, collectively, UK consumers had 155 million active subscriptions. Figures like that might suggest that the model is unstoppable, but, as Barclays data shows, consumers are tightening their belts, with many considering cancelling these recurring payments to cut costs.
Barclays found that 59% are concerned that the rising cost of digital content and subscriptions is impacting their household finances. One in five (21%) believe they’re spending more on subscriptions than they were a year ago, and of 28% are looking to reduce their discretionary spending by cutting back on digital content and subscriptions. Despite this, the model continues to expand and evolve.
