PSA publishes Annual Market Review
New report finds the market outperformed expectations in FY2019/20.
The Phone-paid Services Authority’s (PSA) new AMR, conducted by Analysys Mason, reveals that the phone-paid services market has grown to £646.1 million (exc. VAT), a 2.4% increase from FY2018/19 driven primarily by consumers spending more on services using premium SMS messages. Analysys Mason expects the market to grow by 1.7% in FY2020/21, generating an estimated £657.4 million in consumer spend. This year’s AMR also includes medium-term market forecasts to FY2022/23, where the market is expected to be worth £667.5 million.
The review also predicts that the Covid-19 pandemic will have an impact on the market. With more people spending time at home during lockdown, there may be increased consumer spend in some areas at the beginning of 2020/21. However, there may be a displacement effect later in the financial year because of the potential economic hardship caused by the pandemic.
Other key findings from the report include that:
• more than half (52%) of UK adults used at least one phone-paid service in FY2019/20.
• consumer satisfaction is moving in the right direction. The AMR uses the industry-standard Net Promoter Score (NPS), which has improved from –26 to –17 this year.
• consumers spent more money on TV and radio engagement (£146.1 million) than any other category.