7
Who is Watching Who? Privacy Concerns
Regarding the Evolution of Television
Jason Angiulo and Grant Kleinwachter
How far off was George Orwell’s novel 1984 in predicting the
privacy of daily life in the future? How often are you really alone? How
often do you have absolute privacy? Does the general public know that
“big brother” is closely monitoring them in the comforts of their homes?
Approximately 90% of Americans have invited the most invasive entity
ever created into their homes to stay -- the television, and more
specifically, the set-top box used by all cable and satellite television
programming providers. This clever spy can access each click of the
remote control to report crucial information back to the provider. Then,
by using analytical software, service providers can create viewing
profiles of every customer. This chapter will study television service
providers to find out exactly what information is collected. We will also
explore how it is used to determine the future of privacy related to the
evolution of television. This chapter intends to answer the question: Is
data mining in the digital television world a privacy threat or a
welcome convenience?
The Evolution of Television
The evolution of television and supporting technologies has
significantly influenced the privacy issues customers face today. When
television was initially accepted in the homes of Americans, the
fulfillment of programming was drastically different. Television
programming was originally transferred over radio waves to antennas
on the homes or televisions of viewers. Programming was free and
networks based their revenues on advertising models. Over time,
networks of coaxial and fiber cabling, along with the expanded use of
satellites, have permitted a radically different approach to the
fulfillment of programming. Cable and satellite providers offer their
services on various levels of competition including price, advertising,
features and content.
This competitive drive has forced programming providers to
employ less than ethical solutions to gain a leg up on their competition.
Through the implementation of the “digital set-top box,” these
companies gained the ability to closely watch and profile their
customers based on their interaction with the television system.
Furthering the evolution of television, the Federal Trade Commission
recently voted to require television manufacturers to implement the set-
top box technology directly into new television models, forcing all
subscribers of digital television programming into the watching eye of
providers.
To provide an idea of how much this industry is growing and
the number of people this technology will affect, Kagan Research
provides the following graph representing the continued increase in
digital cable subscribers over the past six years.
How the Information is Collected
In the not-so-distant past the only way television service
providers were able to collect viewing information on a user was
through a ratings system developed by Nielsen Media Research. This
system was initially developed in the 1940s and has been updated and
modified significantly since its inception (Nielsen Media Research). This
rating system is able to calculate audience size and composition on a
large scale. There are two ways that Nielsen gathers this information.
The first is a survey of people from multiple demographics asking them
to keep a TV viewing diary of their viewing habits. The other is by
using Set Meters, which are small devices connected to televisions in
selected homes. Although this system has been useful for years, it has
come under scrutiny by the television service providers because the
information gathered can often be skewed by the randomness of the
surveys and meters used.
With digital cable on the rise everyday, more and more cable
television service providers are offering the bulk of their channel
content in digital format only. This means that to be able to obtain a
majority of service provider’s programming, you will need to have a
digital cable receiver in your home. This is where the service providers
are starting to collect most of the information about specific viewers and
their locations. As of June 2007, 35,255,000 cable subscribers had a
digital cable subscription (Cable Industry Statistics). Most of these
households own more than one digital set top box. These numbers
provide more accurate data collection than the random collection of the
Nielsen ratings system.
Now we will examine how these digital cable boxes collect
information on specific viewers. Every time a cable box is turned on, it
sends information to the cable provider. As soon as you click a button
on the remote control it creates an “event”. These events trigger lines of
code that were developed by the specific cable service provider. Events
are numerous, and any one event can hold an infinite amount of code.
The trigger can do three different things: (Spy-TV)
-
Provide you with the programs or services you select
-
Collect and save information about your clicks for quality
assurance
-
Enter information into a database used by analytical profiling
software
These specific events are used in the following manner: You turn on
your cable box and an event is sent to the database creating a session
start time. This session and the exact time of power on is logged. The
power on button also sends information to the system to start recording
every button press a user makes on their remote. These events are
where the cable service providers can obtain their most valuable
information. By logging every click of the remote it is possible to
determine many things about the TV users viewing habits including:
-
Start and stop times – when and how often
-
Shows watched – very specific information is gathered: how much
of a program was watched, how long you roamed channels, how
long a user stayed on a specific channel, etc.
-
Advertisements viewed – which commercials were viewed fully,
which were skipped (DVR/TIVO), which made the user change the
channel
-
Program guide – how you manipulated the program guide, what
pages of the guide were used
-
Services selected – such as Cable On‐Demand or classified ads
As soon as the cable box is powered off, a session number is assigned
for the specific user, and all of these different types of data are stored in
a database. Computer programs or people then analyze these databases
to create highly detailed profiles.
How the Information is Used
Every specific event stored on a database can be analyzed to
create a profile on each specific consumer. Each television service
provider employs different software companies to develop profiling
software for their systems. Although developed by different companies,
the general use of these programs is the same. These programs create
specific demographic information that can be useful to the television
service provider for marketing and sales purposes.
The first type of profile developed is of specific user viewing
habits. This information is used to detect how many people are
watching a specific program at a specific time. It also analyses how loyal
a specific viewer is to a program. This information is very useful to the
TV networks because it tells them what programs are good for airing
and which ones should be canceled. These are vital statistics that tell TV
networks how to keep your eyes glued to the screen. This in turn
provides information on how much a segment of commercial time costs
during a specific show or event.
Another type of profile is a demographic profile. Most of this
information is collected when you sign up for your TV service.
Information included is home address, street location, and specific
neighborhoods. By using this general information, providers can make
estimates of household income and purchasing habits in specifics areas.
They do this by analyzing the ads and commercial information that are
viewed on the TV screen. With this information, the computer program
is able to determine if you are a high, medium, or low-end buyer, as
well as how likely your household is to be interested in a specific
product or service.
Information about your lifestyle can also be profiled. Just by
analyzing the content watched, computer programs can detect many
traits about you, your family and/or your roommates. It is possible to
detect how many people or what specific person in a household is
watching the television at a specific period of time. It is also possible to
sense viewers’ age, gender, race, and even sexual orientation. It is
possible for a program to infer all of this about the user because
people’s viewing choices start to adhere to specific patterns. Once these
patterns are detected, the user’s profile becomes more specific.
After all this information is stored about a user and a profile is
created, these programs then break the profiles down into segments.
This is where the information becomes very useful and profitable for
the cable service providers. Information on specific segments of people
can be sold to corporations, or to the advertising firms that develop the
commercials for these companies. This allows the companies to partake
in direct marketing to specific consumers rather than broad marketing.
Marketing to people who are more likely to be interested in their
products provides companies with greater response to their services or
products while cutting costs. This information can also be sold to
governments seeking information on possible terrorist threats, illegal
activities, or political activists.
The Future of Television
With the growth of technology in the digital television
industry and insufficient legislation protecting citizens, the sky is the
limit for the programming providers. With all of the information being
collected on digital television subscribers, it will be possible to send
specifically targeted advertisements to each particular user. For
example, Fred turns on his television and the system is alerted. The
program brings up Fred’s profile to analyze and sends targeted ads to
him. It knows that usually every Friday Fred orders a pizza at 8:00pm.
At 7:15pm the cable box brings up a menu where Fred can order his
pizza directly from the TV interface without even having to get up from
the couch. While Fred is waiting for his pizza to arrive, another
commercial break hits. At this point a jewelry store advertisement is
shown. This specific ad was targeted at Fred because in the past few
months it was detected that Fred has been living with a woman, and it
is two weeks before Valentines Day. The jewelry store ad also brings up
a click box where Fred can obtain more information on the store, such
as their offerings and locations. This is just one example of how
advertising can be tailored to a specific user. There are endless
possibilities of how profile information will be used in the future for
advertising purposes. The (limitless) possibilities increase daily with the
size of the databases constantly being analyzed.
Other advancements in the digital television world will
include the ability to interact with TV game shows or other multiplayer
games. Interactive television (iTV) provides a medium much like the
Internet by connecting viewers through to a game of their choice. There
are multiple possibilities from poker to chess, all controlled by the
remote control. Another development in the works is the ability to
interact with live broadcasts. Soon, viewers will have the option to
choose which camera angle they want to watch a football game with.
Two-way communication will allow conversations and comments
among those viewing the same program through a simple chat
interface. These advancements can already be seen today with the use of
SMS text messaging in programs like American Idol, Monday Night
Football, etc. Using iTV instead of a cell phone to communicate with
these programs will only be a remote click away.
With the development of all these new mining technologies
and profiling activities, the fact is that your television will start to
manipulate you, the consumer. The interface will be able to offer
anything and everything at the touch of a button. Set-top boxes will
begin to make pop-up like suggestions about what to watch, movies to
purchase, where to eat that night, upcoming events to attend, etc. It is in
this way that the TV will be able to manipulate its viewers even more
directly than it can now. True, a cable box with an implemented DVR can already suggest shows depending on previous watched/recorded
content, but it is still not able to provide the accuracy of future iTV
systems. The rising advertisement opportunities provide new incentives
for companies to advertise directly with digital television service
providers. Due to the increasing imposition of the Internet on other
advertising mediums, there is enormous pressure for the quick
development of iTV by television networks, advertisers, and especially
television service providers. The possible uses of iTV are endless and
the true power of the system has yet to be determined. The
opportunities provided by this technology, both financial and social, are
in the hands of the service providers, advertising firms, television
networks, and government. The future of the most powerful and
widely implemented electronic, interactive, communication system is to
be determined by the desires and ethical decisions of profit-seeking
conglomerates such as AT&T, AOL-Time Warner, Clear Channel, and
News Corp. The most important ethical concern with the emerging iTV
technology is the invasion of consumer privacy.
Privacy Issues Related to Interactive Television and Data
Collection
There are certainly many reasons to continue the development
and implementation of interactive television. However, pressing issues
should alarm the general population about the powers granted to
private corporations. In short, American citizens need to be weary
about accepting iTV too hastily. Concerns regarding privacy in our
country have been addressed since its inception, yet it is easy to
misinterpret the context of legislation in the face of change.
Historically, the government and federal legislation have been unable to
substantially protect citizens from crimes involving emerging
technologies. The failure of congress to address technological issues in
a timely manner has allowed perpetrators to freely terrorize the digital
world.
The television industry takes advantage of the lack of
legislation and regulation surrounding data collection and subjects
consumers to practices that many feel are invasive. While there are a
few laws regarding the information collected by television service
providers, they are insufficient at protecting citizen rights. These laws
mandate the service providers to collect information about consumers,
granted it be used to more accurately deliver service and the
information collected will be released to the consumer upon request.
The laws also require the service provider to notify the consumer of any
data collection taking place. This notification is generally included in
the “Terms and Conditions” and “Privacy Statement” documents
provided by every digital television subscription service. Unfortunately,
those entering into the contract often ignore or misinterpret the
statements. Issues with the existing laws include the lack of regulation
for the use of information being collected or a required time period for
the information to be destroyed. Additionally, consumers only need to
be notified in writing of the data collection, and consumers not sending
in written refusals automatically grant permission for the data collection
upon use of the service. Consumers are, thus, intentionally not given an obvious choice whether to participate in the data collection. Some
customers are not even aware they have a choice or that data is being
collected. Even if a consumer does mail in a refusal of permission there
is no guarantee that it will be processed at all, since no regulatory body
controls the flow of data between set-top boxes and program providers.
While these lax laws only apply to the “events” sent from your
set-top box, there are much more strict regulations regarding PIN, or
“personably identifiable information,” such as name, telephone
number, credit card numbers, etc. for any company in any industry.
This PIN data collected at the original purchase of the service is,
supposedly, never mixed in the same database with set-top box data
and it is illegal for service providers to do so. This is the only legal
assurance we have that the data collected on what is watched or bought
through the television is strictly anonymous.
Although the information collected is considered
“anonymous,” since it is not tied directly to your name, it is still an
invasion of privacy. First, names are hardly of any use to these systems
since advertisers and service providers all reduce you to a statistic
anyway. Even though the system does not match names with other
statistics, rights may still have been violated. The truth is, service
providers monitor and categorize the individual behaviors of each of
their customers in their own homes. The manner in which the data is
collected is physically invasive. Even worse, consumers are practically
tricked into participation with the “legally required” notice hidden in
the fine print. Additionally, the FCC is unable to ensure that set-top box
data is never associated with PIN data. Subscribers must simply rely on
the goodwill of the service providers to securely and conservatively use
personal information in an ethical manner. The privacy issue continues
further as the television service providers are legally allowed to sell and
share the information collected from set-top boxes for financial profits
or other intangible gains. Previously, customers received compensation
for their participation in behavioral studies and marketing surveys.
Now, the information is simply being taken from consumers every
minute of every day and resold at huge profits.
After examining the television service subscription industry, it
is clear to see that the legal regulations favor the television service
providers over the citizens the law is supposed to be protecting. A
serious restructuring of legislation needs to be implemented before the
widespread use of iTV destroys the little remaining privacy available to
citizens.
Public Opinion of Television Set-Top Box Data
Collection
It is one thing to claim that the data collection practices of
television service providers invades privacy, but it is harder to prove it.
The most developed support for this argument comes from lobbyist
organizations such as the American Civil Liberties Union (ACLU) and
the Center for Digital Democracy. While these organizations hold some
power when addressing Congress, it is the overall support of the public
that is crucial for enacting change. It is the public’s opinion that truly grabs the attention of the nation’s leaders, making them consider
current events and emerging technologies.
To help gauge the public’s position on this matter, a survey
was provided to a random sample of 108 American citizens. This
survey covered everything from the respondents’ knowledge of
interactive television to their opinions on privacy and data collection
from set-top boxes. The results were astonishing in some aspects while
confirming many previous assumptions in others. For example, over
75% (82 respondents) confirmed that their household contained a digital
set-top box. Although 89% (96 respondents) did not read the “Terms
and Conditions” or “Privacy Statement” which explains that data is
being collected, 63% (68 of the respondents) generally assume television
service providers are monitoring each set-top box at any given time.
This means the majority of the population probably assumes their
television service providers are monitoring them in some way.
Furthermore, nearly 55% (59 respondents) of those surveyed responded
they did not care if television service providers recorded, monitored,
stored, or analyzed information about how they interacted with the
service.
Although the sample audience did not seem to care that the
set-top box information was being collected, about 78% (84
respondents) did not want the information shared with any third
parties, such as television networks or advertisers. The overwhelming
majority of the sample population, almost 90% (97 respondents), would
prefer to have a choice before being subjected to the data collection
practices of the service providers. Additionally, two-thirds, or (72
respondents), would like to see legislation passed regulating the data
collection of set-top boxes to protect citizens. Overall, of the total 108
respondents 64, around 60%, felt that the collection, storage, use, and
sale of data from television interaction were in fact an invasion of
privacy. While not an overwhelming majority, this statistic speaks
volumes about the public’s opinion of privacy and the civil rights
continuously being violated.
Public sentiments are made clear from the results of this
survey. While the manner in which the data is collected by these
devices is considered an invasion of privacy, the majority of citizens do
not necessarily mind. Due to the benefits received by the service, many
consider the data collection an acceptable and necessary intrusion if the
data is used in an honest manner. The public believes the government
should set regulations requiring service providers to allow each
customer a choice to opt in or opt out, prior to being subjected to data
collection techniques. Additionally, legislation should be passed
limiting the type of data collected, the manner in which it is collected,
the manner in which data is used and sold thereafter, and ultimately the
length in which the data and associated profiles can be stored. While
64% (69 respondents) believe that advertising should be based
somewhat on consumer habits, a strong majority feel that the detailed
information contained in specific viewer profiles should not be shared
with third parties. If these concerns can be successfully addressed, then
iTV may certainly become the most widely used, all-inclusive
entertainment and communication technology ever developed.
Data Mining and iTV: Intrusion or Delusion
Are the concerns of civil liberty advocates grounded in some
truth, or is this research a paranoid delusion? Based on research, survey
analysis, legal reviews, interviews, and personal opinions, there is
definitely an invasive component associated with the conduct of
television service providers. While it is the public’s opinion that these
companies are directly taking advantage of citizens’ rights, the majority
does not seem to care. People certainly recognize the privacy issues
arising from the evolution of iTV technology, but deem the intrusive
flow of data between the set-top box and programming providers
acceptable in order to receive the services and benefits desired.
Data mining in the world of digital interactive television is
certainly a welcomed convenience, but only acceptable up to a point.
Once the line is crossed, the technology and the related data become
intrusive. There are already legal limitations regarding the association
of personally identifiable information with set-top box data. Stricter
regulations should be placed on how data can and will be used in the
future and with whom data can be shared or sold. Service providers
should be required to allow each customer to make a conscious decision
regarding their inclusion in data collection and profiling. Being genuine
and open about the collection of data and the manner it is used will
certainly make the intrusive nature of the conduct less insulting.
While service providers claim all the data being collected
remains anonymous in the system, the manner in which the data is
collected and utilized afterward is still, most certainly, an invasion of
privacy. When considering whether the conduct is invasive, courts
should investigate the physical collection of the data, the motives of
data analysis, actual data collected, and the effect the collected data may
have on the consumers.
In order to prevent the recurring privacy violations of
television service providers, the government needs to realize that
television is a continuously developing technology and congress must
regulate the industry accordingly. There are many advantages and
disadvantages outlined in this chapter regarding the implementation of
iTV. Although only 13% of our survey respondents accurately know
what interactive television is, a tremendous majority are interested in
the benefits offered by the technology. Interactive television is here to
stay and the effects it has on society will be determined as the
technology evolves. It is the responsibility of the government, business-
conglomerates, and the public to ensure that the benefits of iTV
technology enhance the lives of users without sacrificing privacy in the
name of the almighty dollar.
Works Cited
Burke, David. Spy TV. Hove, UK: Slab-O-Concrete Publications, 2000
Cable Industry Statistics. Jun 2007. National Cable and
Telecommunications Association. 26 October 2007
.
Chester, Jeff. Digital Destiny: New Media and the Future of Democracy.
The New Press. 2007
Comcast Technical Representative. Oct 2007. Personal Communication.
29 October 2007
Fact Sheet: Cable Television. June 2000. Federal Communications
Commission. 15 October 2007.
<
http://www.fcc.gov/mb/facts/csgen.html>
Inside TV Ratings. 2007. Nielsen Media Research. 9 October 2007