(Length: 3 pages)

November 30, 2005

Lessons From The Sony BMG Fiasco

Listen Up, Blu-ray And HD-DVD: Consumers Want More Freedom, Not Less

by Ted Schadler

with Chris Charron


Executive Summary (This is a document excerpt)

Sony BMG added copy protection to 51 recent music CD titles — and, unbeknownst to consumers, installed monitoring software on buyers' PCs that hides out like a virus. The consumer backlash was swift and violent. This fiasco will drive labels to look deeper at digital media — which already has strong copy protection — for example, to support subscriptions with attractive royalties and create music discovery standards. Studios in the Blu-ray and HD-DVD camps should make sure that they don't repeat Sony BMG's mistakes: a sneaky approach, an overly aggressive lockdown, and poor PR.

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Analyst: Ted Schadler
Industry: Consumer Technology, Media & Entertainment, Music
Geography: Asia Pacific, Europe, North America

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