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Crunchyroll is rightfully the biggest anime streaming platform in the world. Fans all over the world use their services to watch anime, buy merchandise, read the news, etc. However, following the release of a recent report, fans have been left upset after learning what the company has done.
Last year, the company announced that all of Funimation and Wakanim's content was moving over to Crunchyroll, enabling it to become the biggest anime platform. Following that, in 2022, the streaming website also purchased anime retailer Right Stuf, further expanding its market.
What did Crunchyroll do that infuriated its users?
The anime streaming company violated United States' Video Privacy Protection Act; class action lawsuit ensued
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As per reports, Sony Pictures Entertainment and Crunchyroll reached a settlement in a class action lawsuit on September 15, 2023. The companies lost the lawsuit to Salvador Beltran, Jr., Eli Gross, and others.
Apparently, the streaming company had violated the United States' Video Privacy Protection Act by disclosing its subscribers' personally identifiable information to third-party companies like Facebook, Adobe, etc. While the two companies earlier denied the claim, they later had to settle the same to avoid any uncertainties or expenses associated with continuing the case.
This left fans furious, as Crunchyroll was the world's biggest anime platform. Hence, many users worldwide may have been affected by their data being sold. Now that even the biggest anime streaming platform seemed untrustworthy to them, it enabled several fans to believe that piracy was the way to go to watch anime.
How was the lawsuit settled?
As per the settlement, Crunchyroll users in the United States are eligible to receive a payment of US$30 from the company. The users eligible for the payment have to have registered, streamed, or used the website or application in the past. However, the payment would not be made directly. Instead, eligible users themselves must submit a claim form by December 12, 2023.
As per sources online, many users claimed that they received an email asking them to fill out a form for compensation. However, several users ignored the emails, thinking that they were junk or spam emails. Considering the number of users that must have ignored such an email, there is a high chance that the company would not lose as much money as they initially feared.
Moreover, it is difficult to say if they will even lose any money. One must note that no sources have stated the amount of money the streaming website received for its users' personal data. Hence, there is no way of knowing if the company is at a loss or profit following the lawsuit.
While fans are furious, one must understand that Crunchyroll isn't the only company that has sold its users' private information to third-party companies. Even companies like Facebook have faced such allegations and have managed to win back their users' trust.
Therefore, while there is some loss of trust amongst the fanbase for now, there is a good chance that users will continue using the company's service. This is because the company has effectively monopolized the industry in the West.
Right Stuf migrates all its products to Crunchyroll
On October 6, the streaming company announced that Right Stuf will be phasing out, following which all its products will be transferred to the Crunchyroll Store on October 10. The company even revealed that it will be conducting a sale similar to what Right Stuf does. As part of this, the company even revealed its intentions to expand its e-commerce offerings.
Additionally, the Sony Pictures Entertainment company's acquisition of Right Stuf will not affect any previous licenses and projects set up by the e-commerce store. However, fans pointed out that Crunchyroll has changed Right Stuf’s pre-order and backlog system. They also shared that the store saves credit card information, even when customers don't ask for it.
