Streaming Service Settles Major Lawsuit, Subscribers To Be Paid

in Entertainment, Events


Credit: ITM

The streaming service game has a lot of players these days. Netflix no longer has a monopoly on streaming content as rivals like Disney+, Max, Apple TV+, Paramount+, and Prime Video have churned out award-winning projects and popular franchises. This battle for content supremacy has forced many companies to erase content, crack down on password sharing, and raise subscription prices. Recently, one popular streamer had to settle a major lawsuit when the company was exposed for selling subscribers’ data information.

Streaming Services
Credit: Vox

Most streaming services generate a vast collection of content that varies between countless genres and art mediums to attract a wider audience. Yet, there is one streamer that made its business off of presenting just one style of storytelling. Crunchyroll is a streaming service that only presents Japanese animated shows known as ‘anime.’ The Sony-owned company would find its niche as it would gain 10 million subscribers in just five years.

Credit: Sony Funimation

It seems that the love for anime may have come at an actual cost. Crunchyroll may be eligible for financial compensation towards its patrons. A class action lawsuit was brought against the streamer within the Illinois federal district court. In that case, the court determined that many Crunchyroll subscribers could be entitled to monetary reparation.

Credit: Toei Animation

This class action lawsuit accused Crunchyroll of giving confidential user data to third parties without authorization. Crunchyroll contested the claims once the case was filed but still chose to settle in the end. In order to minimize further costs associated with defending the class action lawsuit, the company chose this tactic. Therefore, subscribers to Crunchyroll who paid for services between September 8, 2020 to September 20, 2023 may be eligible for reimbursement.

The class action lawsuit filed against Crunchyroll, LLC (also known as “Crunchyroll” or “Defendant”) has been settled. According to the class action complaint, Crunchyroll violated the Video Privacy Protection Act (the “VPPA”) by allegedly sharing personally identifiable information (PII) about its subscribers to outside parties without their permission.

Credit: Sony Funimation

According to the VPPA, personally identifiable information (PII) includes data that identifies a particular Person as having sought or got particular video materials or services from a provider of video tape services. The class action settlement states that although the defendant “denies that it violated any law, it has agreed to the Settlement to avoid the uncertainties and costs associated with continuing the case.”

Furthermore, the settlement has stated that if, “You are included if you are a Person in the United States who, from September 8, 2020 through September 20, 2023, (1) was a registered user of an online website, mobile app, or any video-on-demand service or app owned, controlled, and/or operated by Crunchyroll; and (2) viewed videos on an online website, mobile app, or any video-on-demand service or app owned, controlled, and/or operated by Crunchyroll.”

Credit: Sony Funimation

The first deadline for the settlement, according to Kroll Settlement Administration, is set for November 27, 2023. Those eligible for a reimbursement must submit their applications by December 12, 2023 in order to be considered for reimbursement. Applicants may view the settlement terms for the action against Sony Pictures Entertainments and Crunchyroll here for additional information.

in Entertainment, Events

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