Smart devices spark privacy concerns among consumers: study

A majority of consumers believe that it’s impossible to keep their data private and many fear online hackers, says a new study from Parks Associates.

The study, “360 Deep Dive: Consumer Fears in Connected Entertainment,” tracked consumers’ concerns about the connected entertainment products and services in their homes, ranging from large-screen smart TVs to smartphones.

Here are some of the results from the 10,000 U.S. broadband households Parks Associates surveyed online.

• Nearly 60% believe it is impossible to keep their data private from the companies they interact with.

• 77% of consumers are very concerned about someone hacking their online service.

• Three-quarters worry about their computer being hacked.

• Two-thirds are concerned about their smart TV or streaming media player being compromised.

The age of consumers is a factor in how much they worry about data security.

• Over 80% of mature and baby boomer households are very concerned about data security

• Millennials and Gen X concern levels are lower, in the low-mid 70% range.

Consumers trust mobile phone providers much more than social media sites.

• ISPs and mobile phone providers enjoy consumer trust level of 65% in their ability to safeguard their personal data

• Newer and more “open” services such as video sharing and social media sites are considered the least trustworthy, with trust levels of 9%-12%.

The majority of consumers don’t see an upside in sharing their personal data.

• 63% of households don’t believe they get a good return/benefit for doing so

• Only 8% of households, mostly innovators and/or millennials believe they get a good return in exchange for their data

According to Parks Associates, the fact that consumers purchase smart devices should not be taken as an indication that they don’t care about their privacy. Instead, may be the result of a lack of choice or low expectations that companies will meaningfully address their privacy concerns.

Parks Associates senior analyst Craig Leslie says that companies should address consumers’ privacy concerns in order to help their bottom line.

“Companies successful at mitigating these concerns stand to reap volumes of valuable data, and to deliver a more engaging user experience, thus securing higher levels of customer loyalty and long term revenue streams,” he wrote.

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