Insights: How Fitbit is Considering Monetizing User Data
CEO James Park explains why the company doesn't want to sell your personal health tracking data to third parties, but he does want to make money off it. (March 2018)
[MUSIC PLAYING] JAMES PARK: So for us, we clearly don't want to monetize data directly, meaning sell it to third parties, et cetera. It's not in our interests. And there's already a lot of regulation, including GDPR in Europe, that's going to heavily regulate this for the protection of consumers. But we do see the opportunity in data. Managing data flows between different entities is one area, and then secondly, providing insights or diagnoses, some value-add on top of the data. So for instance, a couple of the algorithms that we're working on through the FDA's new Pre-Cert program is algorithms to diagnose sleep apnea, or AFib. So those are some ways that we could monetize the data, by providing algorithms on top of it. SPEAKER: That's great. And it's a subscription model, or is it a-- JAMES PARK: It could be subscription, or it could be some type of risk sharing model as well with payers. SPEAKER: And that is to the payers, right? JAMES PARK: Right. OK.