Finding the right balance: user privacy and personalisation in OTT streaming services

OTT streaming services are making heavy use of personalisation to improve user experience, make content easier to find, and keep users engaged. By analysing viewing habits, platforms tailor recommendations, but this raises privacy and security concerns.

As awareness of data tracking grows, users expect more control. Rules like RODO and CCPA enforce strict data processing rules and breaches highlight the need for stronger security.

Streaming providers need to balance relevant content with responsible use of data. In this article, we will look at how personalisation works, the risks of data collection, and how to protect privacy while maintaining a great user experience.

The role of privacy and personalisation in streaming services

Streaming services such as Netflix, Disney+, MAX, and Amazon Prime Video have completely changed the way people search for content with their advanced recommendation algorithms. Personalisation plays a key role in OTT services, engaging and retaining users.

By analysing viewing history, preferences, and behaviour, streaming platforms can recommend relevant content, improve search results and tailor the user interface to individual viewing habits. This promotes longer viewing time and facilitates content discovery.

For example, more than 80 percent of TV shows watched on Netflix are discovered through the platform’s recommendation system.

Custom user profiles, notifications, and adaptive streaming quality are supported through personalisation and recommendations. These features reduce the churn rate and keep subscribers engaged.

Privacy concerns and regulations

A high level of personalisation comes at a cost. To provide a highly personalised experience, streaming services need to collect and analyse extensive user data. This raises several privacy concerns:

• Collection of sensitive viewing habits and preferences
• Potential for data breaches or unauthorised access
• Cross-platform tracking and data sharing
• Lack of transparency about data usage
• Regulatory compliance challenges across different jurisdictions

Users often fall into what researchers call the ‘privacy paradox’ – they want personalised experiences, yet fear the data collection required to enable them. Interestingly, 61% of global respondents are willing to share personal information in exchange for an improved user experience.

Compliance with global privacy regulations

To address these challenges governments and regulatory bodies have introduced tough data protection laws. The most notable are:

General Data Protection Regulation (GDPR) – Enforced in the EU, GDPR requires companies to get explicit user consent before collecting data, provide transparency on how data is used and allow users to request erasure.

California Consumer Privacy Act (CCPA) – This US regulation gives users the right to know what data is being collected, to opt-out of data sharing, and to request the deletion of personal data.

Children’s Online Privacy Protection Act (COPPA) – Protects data collected from children under 13, requires strict parental consent, and limits data collection practices for child-focused platforms.

These regulations require streaming services to:

• Obtain explicit consent for data collection
• Provide clear privacy policies and data usage information
• Allow users to access, correct, and delete their data
• Implement data portability mechanisms
• Report data breaches within strict timeframes

Non-compliance can result in significant financial and reputational damage. This is even more complicated for global streaming services that must comply with different regulations in different regions. What is legal in one market may be illegal in another, creating operational challenges for platforms in delivering a consistent experience around the world.

Recent regulatory developments have focused on the concept of ‘dark patterns’ – interface designs that lead users to make privacy-invasive choices. Regulators are now looking at how streaming services obtain consent and whether users have real choice in their privacy decisions.

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Strategies to balance personalisation and privacy

OTT platforms need to balance personalisation and user privacy. This requires transparent policies, privacy-focused technology, and user control over data.

Privacy by design

It is crucial to incorporate privacy into the development process from the beginning, not as an add-on. This means assessing privacy risks during product design, default settings that prioritise data protection, and limiting data collection to what is necessary.

In addition, having clear data retention policies and auto-delete further reduces exposure. By building privacy into every step, OTT platforms can minimise compliance risk and strengthen user trust by showing they are proactive about data security.

Transparency and control

Users should know how their data is being used and have the ability to easily manage their privacy settings. Clear, easy-to-read privacy notices help users understand what data is being collected and why.

Some platforms use simple summaries like “privacy labels” to quickly show their data practices. Giving users control over the information they share, such as opting out of certain tracking features, allows them to make informed decisions.

Some streaming services also offer “privacy modes” that limit data collection while explaining how it may impact recommendations. By making it easier to find and understand privacy settings, platforms can build trust and inform users.

On-device processing

Processing data directly on user devices instead of relying on central servers helps address privacy concerns by keeping sensitive information local. This approach includes using edge computing for content recommendations, storing viewing history on the device instead of the cloud, and applying device-based content filtering.

Federated learning further improves algorithms by allowing devices to learn from user interactions without sending raw data to a central server. By reducing the need for large-scale data transfers, on-device processing is a more privacy-friendly alternative to traditional centralised data collection.

Contextual personalisation

Instead of building detailed user profiles, contextual personalisation suggests content based on what the user is currently watching. Metadata helps recommend similar titles, while session-based recommendations focus on recent viewing without storing long-term data.

Collaborative filtering groups users with similar interests using anonymised data, with no individual tracking. Time- and situation-based suggestions adjust recommendations based on the time of day or device type without keeping permanent records. This way recommendations are relevant and privacy-friendly.

Opt-in advanced features

Giving users the choice to enable advanced personalisation helps protect privacy while still offering customised experiences. Basic recommendations can be available to everyone, advanced personalisation like highly tailored suggestions requires users to opt in.

Platforms should clearly explain what data is required for these features and make it easy to opt-out at any time without losing access to core services. This way users can decide how much personalisation they want based on their comfort level with data sharing.

Best practices for users to protect their privacy

It is mainly OTT platforms that play a key role in protecting user data, but individuals can also take proactive steps to protect their privacy. By understanding how data is collected and making informed choices, users can enjoy personalised content without revealing unnecessary personal information.

Review and adjust privacy settings

Most streaming services provide privacy settings that allow users to control how their data is used. Reviewing these settings and adjusting preferences like limiting ad tracking, turning off personalised recommendations, or opting out of data sharing can reduce your data exposure by a lot.

Be selective with account information

Users should not share unnecessary personal details when setting up streaming accounts. Using a separate email for subscriptions and not linking social media accounts can help minimise data tracking across platforms.

Clear watch history and search data regularly

Many OTT services allow users to delete their watch history and search data. Periodically clearing this information helps prevent long-term tracking and ensures past viewing habits do not overly influence future recommendations.

Use strong passwords and enable two-factor authentication (2FA)

A strong password combined with 2FA adds an extra layer of security, reducing the risk of unauthorised access. Users should avoid reusing passwords across multiple services and consider using a password manager to store them securely.

Limit data collection on connected devices

Streaming apps on smart TVs, smartphones and other devices might collect additional data like location or device usage patterns. Disabling unnecessary permissions (e.g. location tracking or microphone access) in device settings can reduce data collection.

Conclusion

The most successful streaming services are those that treat privacy not as a compliance burden but as a core part of the user experience. That means giving users meaningful control over their data while still being able to make recommendations for individual users.

As the industry matures, we can expect to see more sophisticated approaches that deliver increasingly personalised experiences with decreasing privacy impacts. The technologies and approaches outlined in this article represent promising directions, but innovation in this space continues at a rapid pace.

The streaming services of the future will belong to the organisations that provide the understanding that respecting user privacy is as informative as gaining knowledge about user preferences.

At Spyrosoft BSG, we understand these challenges and help streaming services implement secure, privacy-conscious solutions that keep users engaged while ensuring compliance.

If you’re looking for expert support in balancing personalisation and privacy, we’re here to help!

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