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Flixed Newsletter 1 - Dec.23/2019

Flixed Newsletter 1 - Dec.23/2019

Flixed Newsletter - Did Sony Sell Us Out?

December 23, 2019

Issue 57: December 23, 2019

Is it ethical for Sony to sell its customer list to a competitor? While Sony didn't hand over email addresses, it's not pushing users to sign up to YouTube TV. But should the company be giving subscribers a full list of potential options instead of just one?Read on to find out more in this week's Stream Report.

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Streamer's Spotlight: The Ethics of Selling Mailing Lists

Sony Sold YouTube TV the Rights to Its Customers...But Should It?

As Sony's PlayStation Vue careens toward its official shut down date, the company has been trying anything it can to recoup at least a little bit of its costs. As it failed in its bid to get the service

sold completely to another company

, it appears Sony instead went another route: Auctioning off its customers.

Well...only slightly. What it appears Sony did was

auction off the rights to send advertising emails

for one of its former competitors (YouTube TV) to its current mailing list. Some customers might appreciate getting suggestions for where to move onto next. But is it the most ethical thing to do?

Did Sony Sell Its Customers' Private Information?

In a recent email, Sony reiterated to its current customers (numbering around 500,000), that it plans to officially shut down by January 30, 2020. That email also contained a rather blatant recommendation to instead sign up for YouTube TV.

Specifically, Sony's email to subscribers stated:

As the PlayStation Vue service is ending, please consider YouTube TV as a cable-free live TV alternative. Watch local sports and news from 70+ channels, all available on your favorite devices. Learn more here. and try it for free.* (Sponsored link)

What's clear is that YouTube (e.g., Google) handed over an undisclosed amount of cash for these advertising privileges. What's not clear is whether Google got an exchange of personal data in the process. That said, it's highly unlikely.

According to the

US CAN-SPAM Act

, signed into law in 2003, Sony would be on fairly shaky legal grounds if it actually sold email addresses without actually selling its business. Instead, it appears Sony did the legal thing and only sold the rights to send its customers sponsored links for YouTube TV. And quite likely, Sony will gather a commission for any sign-ups to YouTube TV, which is just another already-legal affiliate marketing.

Is Sony's Method Ethical?

Therein lies the big question. One could look at this one of two ways.

In one sense, Sony is trying to help current subscribers find another, comparable service. It doesn't have to do that. It could leave subscribers to do their own research once PlayStation Vue shuts down. Instead, it's giving subscribers some info on where to go to next.

On the other hand, Sony isn't exactly providing an unbiased suggestion. And in doing so, it's also likely gathering a commission, therein profiting from not giving the full information.

Whether or not Sony's method is ethical probably comes down to where you think the ethics of affiliate marketing lies. Sony could certainly just provide a full list of all available competitors for its outgoing subscribers. Then again, it's a business, and maximizing its profit is in its best interest.

Either way, any PlayStation Vue subscriber should probably know: there are plenty of alternatives to YouTube TV. Even if Sony is only sending its customers one suggestion, the cord-cutting market is

still full of alternatives