Anyone who signs up for a streaming subscription will, in future, still be able to withdraw from the contract within two weeks even if the service is tailored to their own viewing behaviour. On Wednesday, the European Court of Justice (Case C-234/25) ruled that providers may not generally exclude the statutory right of withdrawal for such offers.
The case began with a lawsuit by an Austrian consumer association against the provider Sky. The company classifies its programming as "digital content". For that category, EU law allows the 14-day right of withdrawal to be excluded once customers expressly agree to immediate use. Under Austria's Distance and Off-Premises Contracts Act (FAGG), this would be permissible. But the Austrian court hearing the case was unsure whether a streaming service really falls under that term, and referred the question to the judges in Luxembourg.
Personalised recommendations make the difference
The court drew a clear dividing line. A provider that merely makes fixed content available offers "digital content" – here the consumer knows exactly what they are getting before signing. If, however, a service adapts its offering to users' preferences, for instance through personalised recommendations, it counts as a "digital service". In that case the right of withdrawal remains in force.
The decisive point, the court said, is that subscribers face an abundance of individualised content and recommendation features that can neither be grasped at a glance nor easily compared with competing offers. They must therefore be granted a trial period.
At the same time, the court sought a fair balance. Anyone who withdraws must pay reasonable compensation for the service already used. A cost-free "watch and cancel" is thus ruled out; in the court's view, providers' interests remain sufficiently protected.
The ruling relates to the Austrian case, which the country's courts still have to decide conclusively. According to Hanover-based lawyer Tim Wittwer, however, the German and Austrian rules are comparable, so the requirements also apply in Germany – for example to Sky's Wow service offered there. Providers that have so far excluded withdrawal rights are now likely to adjust their terms and conditions. This becomes especially relevant for subscriptions that bundle time-limited major events, such as an add-on package for the football World Cup.