GUEST COMMENT The new rules of engagement in subscription retail

Craig Ferguson, associate vice president of sales, Europe, Evergent, looks at what subscription law changes mean for subscription businesses.

The UK government has brought forward new subscription regulations as part of a series of “everyday fixes” designed to ease cost-of-living pressures. The measures will make subscriptions easier to exit and, separately, target misleading ‘pretend price’ discounts. These new measures are great news for consumers, marking an end to painful loops of customer service calls, buried cancellation buttons, auto-renewal traps, or surprises on bank statements after a forgotten free trial. It’s a big win for subscription transparency and gives consumers more control – but it also forces services across video streaming, gaming, lifestyle and entertainment markets to rethink how they sustain long-term subscriber relationships.

What does it mean for subscription businesses?

Subscription businesses will need to make several changes that most of them can implement with relative ease: updating policy wording, opt-in buttons, new cancellation options and automated reminders before renewal dates or the end of a free trial.

For global services like major streaming companies, this is something they’re already used to – subscription protection rules vary significantly in different countries, and even down to regional state levels in the US or Canada, for example. These changes do come with costs, but larger, modern businesses with nimble backend systems will be better prepared to make those tweaks on the fly – and more affordably – as new regulations emerge.

Consumer behavior is already fluid and cancellations are common. Data from ScreenThink MTM showed that 21% of UK SVoD users are actively subscription cycling, quadruple the level of three years ago, with a further 42% open to doing so. When subscriptions become easier to cancel, some services raise prices or offer fewer trials. Generally, blanket price hikes don’t always have the desired long-term effect. Higher prices without any increase in value for the consumer is a quick way to erode trust and accelerate cancellations.

At the same time, abandoning trial models entirely can limit new subscriber acquisition. People still want to ‘try before they buy’ – the important part is giving consumers a compelling experience that makes them want to stay. We’re seeing services become more creative in how they design trials, loyalty incentives and pricing options. Subscription bundling is also becoming more important, packaging multiple services together to offer favourable prices and simplify payment for consumers.

These changes mean marketing and customer experience teams need to work smarter: collecting more feedback when users cancel so they can improve the service; delivering personalised offers, often including bundled services, that consumers will value; or enabling subscription pause-resume during quieter periods.

Tracking real-time behaviour and understanding why consumers cancel is now critical – it means services can offer more curated subscription options that reflect what users really value.

Subscriptions are about trust

Consumers want services that demonstrate unique value and give them more control – whether that’s easy cancellation, different ways to pay, or flexible subscription packages based on actual usage instead of one-size-fits-all monthly fees.

This shift is already happening. In markets like sports and streaming, rigid subscriptions are giving way to personalised pricing models, single-team sports, pay-per-view or weekend passes that let viewers engage with content on their own terms. Our experience shows us that if you give subscribers more control, they’re more likely to stick around. And if they do choose to cancel, the experience should be positive. We’ve seen some subscription services offer personalised offers at the point of cancellation to save up to 20% of users from leaving the service.

The World Cup was a good example of some of these newer strategies in action. Several free-to-air broadcasters in global markets began exploring event-specific, paid options without locking viewers into long-term subscription packages. This isn’t anything new. In the UK, public service broadcasters such as ITV already combine free programming with premium offerings, but temporary passes for major events offer another flexible model. By giving audiences the option to pay for enhanced access on a short-term basis while keeping core coverage free, entertainment services can generate additional revenue without undermining universal access.

Subscription businesses should see these changes as opportunities, not threats. It’s a chance to demonstrate trust and value. That’s what keeps subscribers on board in the first place.

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