LGI report shows multi-billion benefit of data sharing in jeopardy
The commercial use of personal data is potentially of huge economic value, with a new Liberty Global report saying that “at a 22% annual growth rate, applying personal data can deliver a €330 billion annual economic benefit for organisations by 2020”.
The international cable operator has released its report The Value of Digital Identity as a response to the EU Proposal for the Regulation on General Data Protection.
It comes as a quarter of the world’s population is predicted to be a member of on online social network by 2015.
At a roundtable in Brussels this week, John Rose, Senior Partner & MD of The Boston Consulting Group, which researched the report, indicated that roughly €50 billion was the current monetary benefit extracted by businesses and governments across Europe. The report places the potential consumer value of the trade in personal data at €670 billion, based on an exchange for free services, goods, convenience and time savings. However these potential economic benefits are highly sensitive, with up to two thirds in jeopardy, if stakeholders do not establish a trusted flow of data.
Manuel Kohnstamm, senior vice president and chief policy officer of Liberty Global, confirmed that 95% of customers for the Horizon product had opted in to allowing their data to be used to offer personalised services across the multimedia platform. A predictable result by the report’s finding that customers are prepared to “trade” in the currency of their personal data to achieve advantages such as free services, convenience and time savings.