The Privacy Debate and iTV

Against a backdrop of the launch of forty-seven new digital channels onto electronic programming guides across Canada, multiple system operators (MSOs) are unveiling a suite of new iTV applications ranging from PVR-enabled set-top boxes and video on demand, to instant messaging on your TV, and couponing through enhanced TV ads. These new offerings are designed to transform your television viewing into a more involving, entertaining and interactive experience. Canada’s cable, satellite and telephone companies are also banking on this new technology to create new revenue streams. However, in addition to the new universe of channels and applications, there is another universe of important issues with which consumers and the television industry will have to contend before the future of interactive television is fully shaped in Canada. How will consumers reap the benefits of new interactive services made possible by digital technology while maintaining their privacy? How will intellectual property be protected in the new interactive era? How will broadcasters and MSOs leverage the new technologies to create new revenue streams? At the core of this issue are two facets that share a symbiotic relationship. One half centers on the ability of MSOs to "profile" TV households based on the information gathered by set-top boxes capable of "learning" viewing patterns and preferences. Relevant programming and other content can then be suggested or directed to different household segments based on their viewing preferences. The other half of the relationship centres on the concern of some viewers not wanting to divulge their personal viewing habits to the MSO. Not everyone wants his/her neighbour to know that they watch the Young and the Restless for example, or ultimate fighting or pornography for that matter. In the U.K and the United States, media watchdog groups have irresponsibly cast interactive television an "evil media empire", and its proponents as Darth Vader-like spectres bent on trammeling the personal privacy of television viewers worldwide. They maintain that broadcasters and MSOs intend to use interactive television to target individual consumers and turn a profit at the expense of personal privacy. This idea, from our perspective, seems somewhat paranoid.It would be ridiculous to assume that Canadian MSOs have arrived at any other than the obvious conclusion that the ubiquitous deployment of interactive digital television services will not be possible if its subscribers feel in any way threatened with a loss of privacy. What protection does the digital TV viewer have? The Personal Information Protection and Electronic Documents Act (C-6) ensures that every Canadian dealing with any federally-regulated industry, such as broadcasting, has access to any information on them held by any such organization. It further ensures that the information cannot be disclosed to third parties without their expressed permission. Broadcasters and MSOs alike participated in the development of this legislation in addition to developing their own privacy code to give effect to the law and to ensure its implementation by the industry. Clearly the Canadian television industry recognizes that for the enormous commercial potential of iTV to be fully realized, a "virtuous" relationship must continue to exist between viewer and provider. Broadcasters and MSOs must provide compelling and engaging interactive offerings that add true value to the viewing experience in order to transform passive viewers into active viewers, or "viewsers". If the consumer’s initial experience with iTV is positive, it will fuel usage and wider adoption. Widespread adoption will fuel commercial return and investment in new content and applications. This "virtuous cycle" is central to the growth of iTV and it all begins with the trust of the consumer. It is our perspective that creating, auditing and promoting a comprehensive privacy policy is not only respectful of your customers; it is also a positive reinforcement of your brand image. The same technology that made the Internet advertising model highly addressable and accountable can be ported to the digital television delivery channel, enabling advertisers to bring unprecedented levels of addressability and measurement to advertising campaigns. Viewers can also avail themselves of this technology to control and customize their personal viewing experience. In this non-linear, customized television environment, the viewer can search and "pull" programs, information and advertising relevant to her personal interests. He or she is no longer just watching television. He or she is involved in an exciting, interactive experience. We believe that a sensible resolution to the privacy issue requires that any "household profiling" determined by set-top box software remain in the household, residing in the subscriber’s set top box. This eliminates the possibility of any other party data banking the information or cross-referencing it with personal information provided by the viewer to the MSO. In this scenario, the viewser can "opt in" to the fantastic new array applications that interactive television offers without compromising his/her privacy, and television can begin its transformation into a highly addressable and highly measurable advertising medium. The Media Experts iTV Lab was created in November of 2000 with the goals of understanding, anticipating and exploring the interactive Television space and, in particular, its impact on advertising. For more information, visit www.itvlab.tv.

The Privacy Debate and iTV

Broadcast | November 15, 2001

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