As the over-the-top (OTT) media landscape continues to evolve, the enactment of the Digital Personal Data Protection Act, 2023 (DPDPA) in India marks a significant shift towards prioritizing consumer privacy and data protection. With the growing emphasis on data-driven innovations, OTT platforms face the dual challenge of enhancing user experience while ensuring compliance with new regulations. This article outlines five essential steps OTT companies must take to align with the DPDPA and leverage data-fueled technologies for growth.
Understanding the Modern OTT Media Landscape
The rise of high-speed internet, coupled with the increasing use of mobile devices, tablets, and smart TVs, has propelled the popularity of OTT platforms. With a market valuation projected to exceed $200 billion by 2026, OTT providers are not just alternative content distributors; they are becoming major content creators and licensors. The competitive landscape is intensifying, and advertisers are eager to capitalize on this growth through targeted and personalized marketing strategies.
The Importance of Data-Fueled Technologies
Data-fueled technologies are reshaping how OTT media companies operate. Unlike traditional advertising, which offers limited measurement and personalization, OTT platforms can track user behavior in real time. By analyzing data on viewing habits, preferences, and interactions, OTT providers can offer advertisers precise targeting capabilities and robust performance metrics.
Five Key Steps for DPDPA Compliance
To navigate the complexities of data protection compliance while maximizing growth potential, OTT platforms should consider the following five steps:
- Review Existing Personal Data
Under the DPDPA, data fiduciaries must obtain express consent from users before collecting personal data. OTT platforms should conduct an inventory of existing personal data—such as names, email addresses, billing information, and viewing histories. By proactively classifying this data, platforms can better prepare for the mandated notices regarding data collection practices once the detailed rules are established. - Set Up Systems to Verify Consent by Guardians for Minor Users
For platforms catering to children, obtaining verifiable consent from guardians is crucial. As efficient age verification methods are still being developed, OTT companies should implement systems that require guardians to complete consent forms, verify identity via phone calls or video conferencing, or provide government-issued IDs. This ensures that platforms comply with DPDPA requirements and protect the privacy of young users. - Define Purpose for Collection and Processing of Personal Data
The DPDPA mandates that any consent request for data collection must be accompanied by a clear notice detailing the purposes for processing personal data. OTT platforms should articulate these purposes broadly, covering not just core services but also ancillary features, such as personalized content recommendations and marketing initiatives. This transparency fosters trust with users and aligns with compliance expectations. - Agreements with Third-Party Data Processors
Data fiduciaries bear responsibility for the actions of their data processors. OTT platforms must ensure that any third parties engaged for data analysis or processing are bound by robust agreements that enforce compliance with the DPDPA. These agreements should include clear representations, warranties, and indemnities, protecting both parties and ensuring responsible data handling practices. - Implement Robust Systems for Data Management
Finally, OTT platforms should establish dedicated teams and systems to manage data protection requirements effectively. This includes processes for handling user requests related to consent withdrawal, data corrections, and erasure. Timely responses to user inquiries and compliance with regulatory directives will enhance the platform’s reputation and foster user loyalty.
Embracing Data Trends in OTT Media
As OTT platforms adopt these compliance measures, they can also leverage data trends that are reshaping the industry. Key trends include:
- Changing Media Consumption Habits: With more consumers turning to OTT platforms for on-demand content, valuable data generated from user interactions can provide insights for advertisers seeking precision targeting.
- Emerging Data-Fueled Technologies: Innovations in artificial intelligence allow for highly personalized content suggestions, while advancements in blockchain facilitate secure transactions.
- Increased Data Privacy Awareness: As consumers become more informed about data privacy issues, OTT platforms must prioritize transparency and data protection to maintain trust.
Conclusion
The OTT media landscape is brimming with opportunities for growth, driven by data-fueled technologies and a demand for personalized experiences. However, compliance with the DPDPA is crucial to building a sustainable and trustworthy platform. By following these five key steps, OTT companies can navigate the complexities of data protection while capitalizing on the evolving media landscape.
