PhonepayPlus report says virtual goods bought via mobile on social networking sites leapt from £1.5m in 2009 to £8.1m in 2010.
The UK regulator of premium rate services (PRS) published the stats to coincide with the publication of its new code of practice.
It says this moves from a rules-based to an outcomes-focused approach to the regulation of the PRS industry, which should make regulation more flexible in a fast changing sector.
However, PPP is cautiously confident that its actions are already bolstering consumer confidence after the dodgy period in the mid-noughties and all those ringtone scams.
It revealed that in 2010 the UK PRS market grew slightly, up by 0.8 per cent from £810.1m in 2009.
And it added that only three per cent of phone-paid service users cited “lack of trust of the companies offering these services” as the reason they weren’t interested in participating.
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PPP found the single most important factor that would increase trust in PRS is accurate pricing, cited by almost 74 per cent of PRS users.
Paul Whiteing, CEO of PhonepayPlus, said: “The landscape for PRS is changing fast. We need regulation that allows industry to take full advantage of the opportunities that such innovation throws up while always keeping in full view the need to pre-empt and prevent consumer harm.
“I believe our new Code of Practice is exactly what we need in the years ahead to help us and industry meet the challenges and fulfil the opportunities outlined in this annual market report today.”
Go to the PPP website for more info on the new code.
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