What Top Gun and Data Privacy Laws Have in Common

By Rachel Gantz, Proximic by Comscore

The year is 1988, “Top Gun” is the biggest movie and the closest thing to streaming is renting a VHS from Blockbuster. That same year, the Video Privacy Protection Act (VPPA) was passed, designed to protect consumers’ rental history privacy. This law arose after Supreme Court nominee Robert Bork’s video rental records were disclosed without his consent. Although the list contained nothing controversial (it included titles like “A Day at the Races” and “The Man Who Knew Too Much”), the incident raised privacy concerns and led to the enactment of the VPPA.

Fast forward to today, and while Blockbuster is a relic of the past, the VPPA continues to shape the future of streaming. When you watch “Top Gun: Maverick” on Paramount+, the VPPA is still at work, testifying not only to Tom Cruise’s ageless appeal but also to critical aspects of the present and future of Connected TV (CTV).

Back to the Future 

The VPPA, originally enacted in the era of VHS rentals, still significantly impacts data-sharing practices in modern CTV. With some narrow exceptions, the VPPA restricts the disclosure of viewing habits without consumer consent, posing new challenges for advertisers and publishers in the digital age. This law requires CTV platforms to navigate the interaction of the VPPA with other privacy regulations, balancing the need for detailed audience data with legal requirements to protect consumer privacy. As a result, publishers may be cautious about sharing granular viewing data.

Just a few years ago, as major Ad-supported Video on Demand (AVOD) services like Pluto TV, Tubi, and Peacock began to grow, their targeting capabilities were still in the early stages of development.

The demand for AVOD content was high, and publishers understood that more transparent and precise targeting would develop as they built out their technology stacks. Significant advancements have been made today, but advertisers and publishers still need to grapple with fundamentally conflicting incentives around content and data transparency.  Achieving the next stage of AVOD maturation requires resolving these differences with the right technology and approach.

Balancing Act

Publishers are hesitant to provide full transparency unless through direct sales, as it helps them maintain the premium on their supply. They want to protect their proprietary information and the value of their inventory. On the other hand, advertisers are pushing for transparency and the ability to buy programmatically, seeking better targeting and measurement capabilities.

This tension is further complicated by privacy laws like the VPPA, which, despite its age, continues to apply to how certain viewing data can be shared and used. With privacy regulations expected to evolve as predictably as the next “Mission: Impossible” sequel, achieving direct data transparency and collaboration becomes even more challenging.

Mission: Not Impossible

Resolving these conflicting interests is crucial for the next stage of AVOD’s evolution. For publishers, it is key to find privacy-enhancing solutions that allow them to offer advertisers the granularity they desire without compromising their own data integrity. Publishers need that middle ground in which they do not have to give up critical proprietary information while still supporting direct sales and increasing the premium on programmatic supply.  Further, advertisers increasingly need privacy-friendly approaches that still allow them to achieve better targeting, transparency, measurement, and insights for guiding more effective omnichannel media buying strategies.

In the world of modern media, understanding content patterns and viewing behaviors is crucial for effective advertising. However, as “The Man Who Knew Too Much” reminds us, possessing more information comes with great responsibility. CTV networks must always protect the privacy of users in accordance with applicable laws, bearing in mind that the VPPA is also constantly evolving through litigation.

The Path Forward

By fostering greater collaboration between publishers and advertisers, the industry can move towards a more transparent, efficient, and privacy-focused future. As the CTV landscape continues to evolve, the enduring principles of the VPPA remind us that protecting consumer privacy and providing valuable transparency are not mutually exclusive goals. With thoughtful strategies and innovative technologies, the CTV industry can thrive, benefiting both advertisers and publishers while respecting the privacy of the viewers they serve.

About the Author

Rachel Gantz serves as the Managing Director at Proximic by Comscore where she oversees product, sales, partnerships, go-to-market strategy, and operational execution of Comscore’s programmatic targeting business – fueling the advertising ecosystem with best-in-class quality data at scale.  Rachel brings to this role over a decade of experience in market research, media measurement, and consumer insights.