Lights, camera, privacy!

The feeling that our digital devices possess an uncanny familiarity with our preferences is increasingly common. The seemingly coincidental appearance of a ‘Brooklyn 99’ recommendation shortly after a casual utterance of ‘noice’ can be unsettling. Earlier, the digital realm in India operated with a relatively unstructured approach to personal information management, characterised by fragmented regulations.

Globally, however, the General Data Protection Regulation (GDPR) in the European Union established a precedent for data privacy, impacting even the entities operating beyond its direct jurisdiction. The enactment of the Digital Personal Data Protection Act (DPDP Act) of 2023 represents a move towards establishing comprehensive data privacy standards in India, with recently released draft rules providing further operational context.

Within the media and entertainment sector, the fundamental objective is audience engagement and connection. This endeavour inherently involves access to user data, including viewing histories and preferences. Treating this information solely as a transactional metric, without due consideration for privacy, risks a rapid erosion of audience trust, a critical asset in this industry. Data mishandling or privacy breaches can swiftly lead to reputational damage with lasting consequences.

The data protection regulations, such as the DPDP Act, are leading to establishment of new operational parameters. The processing of user data without explicit consent carries the potential for severe penalties. However, adhering to stringent privacy standards offers an opportunity to cultivate strong audience relationships, signalling a commitment to user value beyond mere engagement metrics. In a competitive market, a reputation for prioritising privacy can serve as a distinct advantage, fostering audience loyalty and enhancing brand perception.

Consequently, media and entertainment companies must adopt informed and innovative strategies to navigate this evolving landscape, emphasising transparency in data practices to build and maintain audience confidence. The sensitive nature of media consumption data, revealing personal preferences and demographics, necessitates a careful balance between personalisation and the imperative of respecting user privacy.

The impact on business models

When it comes to showing personalised content and ads to consumers, things might look a little different. Companies might need to rely more on the content itself to target ads (if consumers are watching a cricket match, they will probably see ads for sports gear) rather than just their profiles. They might also use clever ways to analyse data without looking at individual profiles. These regulations challenge media and entertainment companies to innovate.

The traditional model of targeted advertising, which relies heavily on personal data, is being questioned. Companies need to explore more ethical and transparent strategies, such as contextual targeting, where ads are based on the content being viewed, not the user’s profile.

Rethinking advertising

Companies may need to invest in new, privacy-enhancing technologies—those that allow them to personalise experiences without compromising privacy. This could include privacy-preserving machine learning and data anonymisation techniques. One big thing is ‘privacy by design’. This means thinking about privacy right from the start when building new apps or features, not just tacking it on at the end. They will need to be smarter and judicious about what data they need and avoid collecting everything under the sun.

As brands brace for this new world, building consumer trust will prove to be a competitive advantage. Transparency and respect for privacy will be the powerful differentiators. Companies that are upfront about their data practices can build stronger and more loyal relationships with their audiences.

Children’s data is another area requiring special attention. The government is serious about protecting kids online. The media companies creating content for younger audiences will have to be extra careful.

The bottom line? India’s new data privacy rules are a game-changer for the media and entertainment industry. Companies that embrace privacy, are transparent with their users, and get creative with how they operate will likely thrive in this new era. It’s all about finding that sweet spot where innovation and privacy go hand in hand, ultimately building more trust and a better experience for all of us.

— Akarsh Singh, CEO and co-founder, Tsaaro.