Largest Ever Survey of Digital Subscriptions – 78% Don’t Want Fixed-Term Subscriptions

90% of consumers state the ending of a subscription to a service should be entirely their decision.

5th August 2021: Research of 1,000 consumers, commissioned by aimm in June 2021, observed that 93% described the process of signing up to a subscription to be clear and transparent. Just 1.5% of consumers found themselves subscribed to a service that they didn’t want. Unsurprisingly then, 90% of consumers felt that they alone should be responsible for choosing when to end their subscription, and 78% don’t want to sign up for a fixed term.

The research found that when it comes to digital subscriptions, regulation should guide consumer behaviour, but not be an imposition.

The current regulations already require robust consent, so any new regulations that impose stricter criteria will automatically discriminate against subscribers who are passively happy. The natural suspicion of consumers to click on links to renew a subscription means that services, including charity fundraising, will suffer, should this become a requirement.

The recommendation from the research, which asked about consumers’ preferences regarding reminder messages and length of subscriptions, is that for monthly subscription services a reminder message should be sent every month for the first 3 months, then once a quarter following that, with an additional service summary sent annually.

Joanna Cox, General Manager at aimm said “We wanted to ask consumers what they wanted when it came to digital subscriptions. The results of the research overwhelming show that the current regulations provide enough security for consumers and if anything they’d like to be contacted even less than they currently are.”

Over 97% of consumers felt that an annual service summary, that was for information only and did not need to be acted on, would be beneficial. Consumers now think of digital subscriptions as long term and not in 12-monthly timeframes. This is backed up by the fact that 75% have subscribed to a service or donation for over a year.

“We want to make sure that consumers are protected and feel safe using mobile subscriptions to sign up to services or donate to charity,” said Neil Johnson, Chairman at aimm. “However, we also want to make sure that we don’t create regulations that are too stringent, that actively dissuade consumers from signing up to quality subscription services, or mean that they are inadvertently cancelled. Too much unnecessary regulation risks damaging the consumer experience and the subscription business model; a model which creates a convenient way for users to pay for services they enjoy.”

 

Details about the research

Research was commissioned via Mobile Squared during June 2021. This research asked a panel of 1,000 unbiased people about their experiences, with the expectation that this would provide a meaningful insight into the world of those with a passive happiness with the service they receive. The panel was evenly split by age group, gender and location, to ensure a fair cross-representation of society.

Whilst recognising there have been challenges with phone-paid subscriptions in the past, these have now largely been resolved. This research addressed the experiences of those with a passive happiness with their subscription; the silent majority of people now using phone-paid subscriptions without concern.

Two new special conditions for Directory Enquiries services

Today PSA are publishing their final statement on their DQ review which sets out two new special conditions on pricing transparency at onward call connection and IVR promotions on inactive geographic numbers.  The statement and responses to the consultation can be found at this link.  Their notice can be found here.

New price cap on 118 numbers

People who call directory enquiry services will be protected from high prices under a new price cap on 118 phone numbers, announced by Ofcom today.

Ofcom have been concerned about directory enquiry prices rising steeply. Some providers charge almost £20 for an average 90-second call. The price charged by the most popular service – 118 118 – for a 90-second call is now £11.23.

Although there are cheaper services available, Ofcom’s research shows that consumers tend to call the numbers they most easily remember.

And while the number of calls being made to 118 services has been falling by around 40% every year, more than a million people in the UK – many of them elderly – still use these services.

The cost of calling many of these services is now well above what people expect to pay. Ofcom’s research estimates that around 450,000 consumers a year are paying £2.4m in total more than they expect for these calls, with some struggling to pay their bills.

So Ofcom is stepping in, by capping the maximum amount a 118 service can charge at £3.65 per 90 seconds. This will bring prices back to 2012 levels, and closer to what people expect to pay.

To allow providers time to adjust their prices and billing systems, the price cap will come into force on 1 April 2019.

A news release is available.

Give PSA your feedback on how they’re doing

At the beginning of March an invite was sent out to Industry for a survey to give feedback on how PSA are doing as a Regulator.

This is your last chance to have your say and give your views. The feedback received will be used as a benchmark for their performance to ensure the needs of the stakeholders are met.

You can give your feedback to PSA by following the link to the survey HERE

PSA Latest Adjudication and PSA priorities Feb 2017

The Tribunal of 6 February 2017 considered one case, concerning an adult video subscription service.

Find further information here: http://psauthority.org.uk/for-business/tribunal-adjudications/latest-tribunal-adjudications 

 

CEO Jo Prowse discusses PSA’s priorities for the next few months including reviewing guidance on consent to charge and research into consumer complaint journeys.

Read the blog here: http://psauthority.org.uk/blogs/2017/january/7-priorities-for-this-quarter