The premium rate service (PRS) market in the UK was worth £555.3 million in 2017-18 including charity donations, down 12.1% on the previous financial year. Excluding Charity donations, the phone-paid services market was worth £517.8 million, down 13%.
This represents the biggest year-on-year decline in revenues since the market decline commenced in 2010. The accelerated decline is down to artificial revenues in FY2016-17 caused by the surge in promotions and sales of Non-broadcaster competitions and quizzes.
Operator billing & PayforIt accounted for revenues of £200.4 million and a 36% share of total revenues, followed by Mobile (PSMS and voice short codes) with revenues of £170.2 million.
Only Operator billing & PayforIt experienced year-on-year growth (19%), although this is significantly down on the year-on-year growth of 31.4% enjoyed in the previous financial year.
Mobile-based services now represent 74% of the PRS market here in UK.
Voice PPS/09 and TV red button has now become the largest of the voice-based payment mechanics with revenues of £54.8 million in FY2017-18.
In FY2015-16 Charity donations contributed to £122 million revenue. In 2017-18 only 2 years later we notice an accelerated decline of £37.5 million revenue.
Directory Enquiries (DQ) created revenues of £46.9 million a large decline on the 2015-16 financial year where revenues were at £82.7 million. Voice 087 services have generated £45.4 million.
Customer Perception, Consumer Research of Phone-Paid Services
• 85% of Phone-Paid services users said they had not experienced a problem with the service.
• 15% of users claim to have experienced an issue within the first 12 months where the service wasn’t up to expectation.
• Three-quarters of users had never experienced a problem and said their usage of phone-paid services is unlikely to stop.
• 20.1% of PRS users complained that there was poor content or service.
• 27.1% of these users stopped using PRS because the content or service was considered expensive.
• The data suggests phone-paid services, on average, are becoming stickier and driving longer and more lasting engagement with the consumer.
• PRS Service types with the highest percentage of users experiencing a problem were; Adult talk Services - 36%, ICSS – Call an Advisory service – 31%, Low-cost International or reverse charge calls – 30%, Customer Services – 28%, Tarot / Astrology – 27%
• On average, 21% of phone-paid services users participating in the consumer research claimed to have had their trust compromised by at least one phone-paid service over the previous 12-month period. This presents a significant improvement on the 32% of users in the previous year that claimed to have had their trust compromised.
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