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Title: 3 PRODUCT TRACKER « Back to Case Studies

Situation:

Sony’s BMG Music Entertainment division includes some of the most popular signed recording artists. In their concern for protecting their recorded copyright from free downloads, Sony took the unusual step of including a surreptitious program, or root kit, on all their music CDs that would prevent file sharing. In the fall of 2005, a lone blogger first wrote about finding the root kit program on his PC after playing a BMG CD. Because the root kit program opens security holes on the computer, root kits are typically considered spyware. The lone blogger wasn’t alone for long. A well known security expert, Mark Russinovich, soon posted a blog “Sony Root Kits and Digital Rights Management Gone Too Far” that set off a firestorm of criticism that was picked up by mainstream media, and bloggers the world over. Sony at first defended its practice.

Solution:

Umbria could have quickly assessed the rapidly mounting negative discussion, and provided Sony with a valuable gauge of the public sentiment as discussion on the blogosphere began to talk of boycotting all Sony products.

Outcome:

The incident ultimately is costing Sony hundreds of millions of dollars, as it defends itself against the class action suits and investigations brought by the Attorneys General of New York, California, Texas, and even Italy, and recalls the hundreds of thousands of affected CDs. Sony’s marketing department must also now make investments to rebuild its brand. Umbria’s ability to monitor marketing effectiveness, to provide a picture of competitors’ positioning, and to provide specific input the latest trends in the industry could be a critical component of designing and monitoring the effectiveness of that marketing strategy. Umbria listens.

 


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