According to the findings of the KPMG Media Tracker, 95% of consumers are unwilling for media companies to share their data with a third party.
The survey of 1,500 households revealed younger consumers to be particularly concerned about data privacy, with 97% of 18 to 24 year olds refusing to allow their details to be passed on, regardless of the benefits offered in return.
This trend jars with demands from advertisers, who want increasing access to customer data as they try to refine their campaigns and hone in on their intended market.
David Elms, Head of Media at KPMG, said: “This questions the assumption that the younger generation is comfortable sharing their data if there are benefits offered in return. Generation Z places a high price on privacy, and while some personalisation may be welcome to improve their viewing experience, they are not prepared to readily offer up their data.
“There has been increasing discussion of the use of consumer data for higher levels of personalisation particularly around advertising but this survey highlights that most consumers would resist the use of their data for such purposes.” Those surveyed also said they were in favour of net neutrality, with 66% believing all internet traffic should be treated the same.
“Consumers of media have made it clear that they are strong supporters of net neutrality and do not believe that companies should be able to pay to prioritise their internet traffic,” said Elms.
“However, if faced with an environment where internet speeds were being heavily impacted by the sheer volume of content being downloaded, I wonder if this view would shift as consumers increasingly struggled to access their content. It could be that in this scenario we see more support for a tiered internet, but at the moment consumers seem to be resoundingly in support of net neutrality.”
UK media companies are on course to achieve their fastest year of growth since 2007, according to KPMG’s Media Tracker survey, marking three successive years of improving business conditions across the sector. There was, in particular, an impressive rebound in media sector activity in the first half of 2015.
However, the need for media companies to source new revenue streams remains pressing. The size of the UK service economy has grown by more than 8% from its pre-crisis peak in 2008, but for core areas of the media sector, such as publishing, audiovisual and broadcasting activities, gross value added is only around 2% higher over the same period.
David Elms said: “Changes in patterns of media consumption and consumer preferences continue to alter the landscape facing companies. The demand to consume content ‘anywhere, anytime, on any device’ is set to continue and grow.
“The recent strength of the media sector highlights that for those prepared to embrace the new world, the potential opportunities far outweigh the structural challenges facing the sector.”
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Zoe Sheppard, Senior PR Manager at KPMG
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KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 12,000 partners and staff. The UK firm recorded a turnover of £1.9 billion in the year ended September 2014. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 162,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.
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