A privacy display comprises a polarised output spatial light modulator, reflective polariser, plural polar control retarders and a polariser. A birefringent surface relief diffuser structure is arranged to transmit light from the display with high transparency and provide diffuse reflection of ambient light to head-on display users. In a privacy mode of operation, on-axis light from the spatial light modulator is directed without loss and with low diffusion, whereas off-axis light has reduced luminance and increased diffusion. Further, overall display reflectivity is reduced for on-axis reflections of ambient light, while reflectivity is increased for off-axis light. The visibility of the display to off-axis snoopers is reduced by means of luminance reduction, increased frontal reflectivity and diffusion of ambient light. In a public mode of operation, the liquid crystal retardance is adjusted so that off-axis luminance and reflectivity are unmodified.