Phone-in Confidence “almost non-existent”

Hot on the heels of the 2 million fine handed out to GMTV by Ofcom for its part in-premium-rate phone-in scandals, Mott MacDonald Schema, a UK-based management consultancy advising the technology, media and telecommunications industries (TMT), says it has identified the depth of the commercial challenges facing TV broadcasters.
The company has released results of commissioned research carried out by Ipsos MORI, which finds that consumer confidence in premium rate TV phone-in competitions is now almost non-existent.
The research, among a nationally representative sample of 990 British adults aged 15+ in August 2007, found that of the British consumers who have used premium rate phone-in services, 89% have lost confidence in them. When asked, almost two thirds of all respondents agreed that premium rate TV phone-in competitions and votes are just a way to cheat people out of money with no chance of success.
Only 2% of respondents said the publicised problems had made no difference and they would still use premium rate TV phone-in competitions and votes, while 4% said they had lost some confidence but would still consider using them. 84% of respondents are unlikely to participate in premium rate TV phone-ins, even if they were clear about the costs and likelihood of winning. 73% of British consumers believe that there are problems with premium rate TV phone-in competitions, and votes, which need to be resolved.
Although there is a clear market for premium rate phone-ins, the public has lost all confidence in their honesty, says Robin Bosworth, Senior Media Consultant at Mott MacDonald Schema. If network operators and broadcasters want to restore faith in their audience and reinstate their revenue streams, they need to review their phone-in competitions to ensure total honesty and rebuild confidence. Possible means of doing this could include the donation of revenues to charity, greater transparency of the charging structures and a programme of reassurance and education of consumers with trusted personalities.
Bosworth believes that phone-in competitions can still be both viable business opportunities and fun initiatives for a television audience but says must be a clear set of guidelines for broadcasters and operators to adhere to.
The ongoing Ofcom consultation following an inquiry in March 2007 is a welcome step, and should result in broadcasters being made more accountable for their use of premium rate phone-ins, he says. However, its the responsibility of operators and broadcasters equally, to ensure they do not mislead the public. It will take time to win back the consumers trust but, with strict adherence to clearly stated and transparent rules, it can be done.