Sony says it's (sort of) sorry. They say they'll take the CDs back (although they don't say how they will find the things). They say they won't do that again, exactly, but might do something close to it.
Too late.
Wired estimates the "rootkit" (a virus kernel) distributed without notice by Sony's BMG Music now affects a half-million networks. Microsoft says it will have its security software disable the virus.
Not enough. Because by this action Sony has done more to encourage the piracy of intellectual property than a million real pirates could have. Sony has also poisoned its entire sales channel, and for years to come. How many small used CD stores are going to go out of business over this?
A CD is not like most products. CDs have an active after-market. Since you can't tell which CDs have the virus, all CDs are suspect. So Sony hasn't just ruined its own business, but the businesses of its competitors. It has destroyed their goodwill, and made the entire industry out to be a bunch of crooks who don't care about their customers. (And by the way, why haven't we heard from the RIAA on this issue?)
This is not an honorable company right now. Sony's honored ancestor and great founder, Akio Morita, is spinning in his grave over this.
At the very minimum Sony CEO Howard Stringer MUST BE FIRED. NOW. If he's not then some district attorney somewhere is going to come up with a piracy charge that will throw top executives in jail. And deservedly so. If anyone else had mass produced a virus precursor and infected CDs with it, they would be in jail. Just because Sony claims a clean motive doesn't change the facts of the case.
Unless Stringer is fired, and restitution is paid, this scandal is going to destroy the company. They're still behind the curve, and they will remain behind it until they make a clean break with the policies that got them into trouble in the first place.
I don't write this lightly. As a journalist I'm reluctant to get involved in corporate politics.
But this has become a criminal conspiracy, and at this point the only way to solve the problem is for Sony Corp. to chop off its own head.
Then, regarding Mr. Stringer, look at the bright side.
He wasn't Japanese.
A Japanese executive who shamed his company and industry like this might feel honor bound to do something far more drastic than resign.
Dana Blankenhorn has been a business journalist for over 25 years and has covered the online world professionally since 1985. He founded the "Interactive Age Daily" for CMP Media, and has written for the Chicago Tribune, Advertising Age, and dozens of other publications over the years.
1. Leonaldo Brum on November 18, 2005 12:37 PM writes...
Firing the CEO is just one thing that really I don't care much about (I didn't know before who he was, so... what is different now?).
Also coming up with a virus-against-the-virus-kit is just making things worse (and I heard already that it HAS made things worse, by helping the other hackers - yeah, Sony is now only one of them - figuring out how that piece of crap works).
Sony has not understood the main thing in business. BUSINESS IS TRUST.
Piracy is NOT as much of an issue as it seems. Especially in music I thin it is time to come up with the truth hands down.
And the truth is:
Music records (DVD, CD, any kind) are OVERPRICED. BRUTALLY overpriced.
You pay now more for a music CD than for te DVD of a premium film that just went off the theatres.
Meaning that thousands and thousands of dollars that go into a movie's production can be repaid with theatre tickets and the sale of DVD.
In my country (in Europe) a film goes out for about 19 € (22 or 23 USD) as soon as it leaves the theatre. A few months later you can have it usually for about 5 € less.
Consider a music CD. It comes with a stupid protection many times that won't let you enjoy it wherever you could theoretically and physically play it. It did not cost a fraction of any movie, nor did it involve the number of people and talents employed in the movie. On top of that, it will hae a much smaller duration and, to add insult to injury, a movie ofte comes with sublime music.
YET... we're paying from 20 to 25 € (more on "exquisite, small-channel, releases) for a a music CD (much more if double CD). And a music DVD (normally featuring some live concert) is even much more expensive.
There is simply no excuse for this.
Piracy will exist in the DIRECT proportion of the price scam. Have no doubts about it.
I practically stopped buying music CDs long time ago - I listen to the radio, go to concerts, buy the occasional record - but that's about it. Occasionally, purchase cd ot tracks from the Internet.
However, look at films - I already have almost 1,000 movie DVD - and counting. The pric e is not fair yet - but in comparison... it's like much closer to it.
THAT, gentlemen, is the reason why the music industry is bad - a bunch of crooks are runnning it.
This Sony mess?... Ah, just to be expected. You get robbed every day - taking ownership of your computer is just the next logical step (haven't they already took over your portable MP3 player?...).
Relax - you're screwed - and it's going to get worse, before it gets better - they use OUR money to buy the authorities, invade our privacy and ignore our rights. Those are the REAL costs of the making of a CD - keeping the extorsion machine in shape.
Permalink to Comment2. Gordon2214 on November 18, 2005 03:04 PM writes...
Ah, for the good old days of Japanese culture......excellent idea. Fall on you sword. Sony is no different than Emron, Tyco, the cable Mogel that got convicted recently or Mr Telephone big guy. They are only interested in geting the money , the pwoer and they don't really have the interests of the company or it's customers at the for front of thier business. We've raised a bunch of crooks, and cheats to run our companys. Lord help us.............EGB
Permalink to Comment3. J on February 2, 2006 03:36 PM writes...
He just killed QRIO the bastard , he should be fired than shipped off to iceland to live in a hut.
Permalink to Comment