Sony caught using spyware

[The Xenos]

Boston Globe article (http://www.boston.com/business/technology/articles/2005/11/12/sony_temporarily_halts_production_of_cds_with_disp uted_antipiracy_software/)
Sony temporarily halts production of CDs with disputed antipiracy software

By Hiawatha Bray, Globe Staff | November 12, 2005

Sony BMG Music Entertainment has temporarily halted production of music CDs that contain an antipiracy program, after two weeks of sharp criticism from technologists and Internet privacy advocates who said it was a destructive form of spyware.

The software program, called XCP, is supposed to limit listeners' ability to make copies of Sony's music on their computers and illegally distribute them over the Internet.

Created by British data security firm First 4 Internet LLC, Sony has XCP installed on about 20 of its titles, including those by jazzman Dexter Gordon and singer Vivian Green.

''We stand by content protection technology as an important tool to protect our intellectual property rights and those of our artists," said a statement issued by Sony BMG and posted on the company's website. ''Nonetheless, as a precautionary measure, Sony BMG is temporarily suspending the manufacture of CDs containing XCP technology." The company also apologized for inconveniencing its customers.

Sony's move follows a torrent of criticism that started with well-known software engineer Mark Russinovich. Russinovich had accidentally discovered that the Sony BMG software had installed itself on his machine without his knowledge, after he'd played a Van Zant CD that contained the code on his computer.

Russinovich found that key portions of the program hid themselves on his computer's hard drive, using techniques similar to those used by computer criminals. In addition, the antipiracy program lacked an ''uninstall" feature, and was almost impossible to remove from a computer without damaging data.

When Russinovich published his findings on his website, security specialists around the country launched their own investigations.

Specialists at Computer Associates International Inc., a major computer security firm, found that the Sony BMG program secretly transmitted information about the user's listening habits over the computer's Internet connection.

Then on Thursday, several security firms reported that computer criminals had developed attack software that made it easy for them to seize control of computers that used the Sony BMG program.

These companies, including industry leader Symantec Corp., added the program to their hostile software listings and started developing cleanup software that would remove it from affected computers.

Meanwhile, attorneys in California and New York filed class action lawsuits against Sony BMG, alleging that the use of the antipiracy software was illegal.

Sony BMG issued a software patch a week ago to modify the behavior of their security program, and it also offered users a way to safely remove XCP from their machines.

But with continuing criticism from the software world, Sony yesterday said it would halt the production of music CDs containing the software, at least for now.

XCP isn't the only antipiracy software Sony uses. Over the past 18 months, Sony has sold about 20 million CDs containing MediaMax, an antipiracy program designed by SunnComm Inc. of Phoenix.

MediaMax works on computers running Apple Computer Inc.'s Macintosh operating system, as well as Windows machines.

There have been no reported problems with MediaMax, and a Sony BMG spokesman yesterday said the company had no plans to stop using the SunnComm software.

Hiawatha Bray can be reached at bray@globe.com.
© Copyright 2005 Globe Newspaper Company.


-Xenos

[The Xenos]

Also: http://news.bbc.co.uk/1/hi/technology/4424254.stm

Sony sued over copy-protected CDs

Revealed in late October by Windows expert Mark Russinovich, the software copy protection system hides using virus-like techniques.

One class-action lawsuit has already been filed in California and another is expected in New York.

Digital rights group, the Electronic Frontier Foundation (EFF), is also gathering information from users to see if a case can be brought.

Court claim

The row erupted following Mark Russinovich's discovery that Sony BMG in America was using a so-called "root kit" to conceal the program used to stop some of its CDs being copied.

"Root kits" are being increasingly used by virus makers to hide their malicious wares deep inside the Windows operating system.

Sony BMG used a program called XCP created by UK firm First 4 Internet that employed similar cloaking systems to hide the proprietary media player used to play tracks on 20 CDs made by the music giant and sold in the US.

But since Dr Russinovich wrote about his discovery the row has snowballed and now has led to lawsuits being filed against Sony BMG.

One filed in Los Angeles by Californian attorney Alan Himmelfarb wants to stop Sony BMG selling more CDs protected by anti-copying software and seeks damages for Californians that have bought any albums protected this way.

According to a report in the Washington Post the lawsuit alleges that Sony BMG has broken three Californian laws. At the same time New York lawyer Scott Kamber is planning a class-action lawsuit for all Americans affected.

The EFF is also gathering stories from buyers of Sony BMG CDs protected with XCP. In a statement the organisation said: "We're considering whether the effect on the public, or on EFF members, is sufficiently serious to merit a lawsuit".

At the same time the Italian digital rights group, Electronic Frontiers Italy, has asked the nation's government to investigate Sony over its use of anti-piracy software.

A weblog documenting the unfolding controversy and calling for a boycott of Sony products has also been created.

When contacted a representative for Sony BMG in the UK referred all calls to its corporate headquarters in New York. A call to a spokesman in that office has yet to be returned.

Artist list

The EFF also released a partial list of all the CDs protected with XCP. The list includes popular artists such as Natasha Bedingfield, Celine Dion and Amerie. It also gave advice for ways to spot if a CD is XCP protected.

So far Sony BMG has not released a list of how many CDs are protected or how many have been sold. It has only said that "about 20" titles are protected with the controversial program.

However, the row does not appear to be denting interest in one of the CDs protected by XCP because at the time of writing Neil Diamond's 12 Songs album was the top seller on the Amazon.com website.

Anti-virus companies are starting to release software that can spot the XCP files. Symantec said it had made tools that can find the files but will not remove them.

Computer Associates said that it would be releasing a tool to completely uninstall the XCP program.

At the same time anti-virus firm Kaspersky Labs branded the XCP program spyware because it hides itself, could compromise security and can slow machines down.

Dr Russinovich has continued his investigation of the XCP software and has confirmed that when installed it can make a Windows computer more unreliable.

He also criticised Sony BMG for making it difficult to get hold of software that can uninstall XCP.


XCP PROTECTED CDS
Trey Anastasio - Shine
Celine Dion - On ne Change Pas
Neil Diamond - 12 Songs
Our Lady Peace - Healthy in Paranoid Times
Chris Botti - To Love Again
Van Zant - Get Right with the Man
Switchfoot - Nothing is Sound
The Coral - The Invisible Invasion
Acceptance - Phantoms
Susie Suh - Susie Suh
Amerie - Touch
Life of Agony - Broken Valley
Horace Silver Quintet - Silver's Blue
Gerry Mulligan - Jeru
Dexter Gordon - Manhattan Symphonie
The Bad Plus - Suspicious Activity
The Dead 60s - The Dead 60s
Dion - The Essential Dion
Natasha Bedingfield - Unwritten
Ricky Martin - Life

Now I can't stand people just downloading and not buying CDs, but taking steps like these are immoral in themselves. If you share it or not, if you burn mp3s or not, they're installing software that compromises the security of your computer. All in their holy crusade to protect their copyright. I mean, they're just plain wrong here and all big brother and they always act like they are the victims.

My comp sci major friend who first told me of this story said that the program or its type was basically used by hackers to get into people's computers. Now Sony is installing it on the computers of anyone who uses their CDs. It seems many hackers can use it to get into these computers. Companies like Symntec/Norton have reported this as it said in the article. He also said not only is it neigh impossible to unintall as the article says, but my friend said if you do try you will likley ruin your CD Rom drive software and reneber it inoperable as the program worms its way in with the CD ROM drivers.

I think this is a damn criminal action on the account of Sony. They have secretly drilled into our houses and are allowing people to sneak in. I hope the law nails these egotistical maniacs.

Where does their crusade to protect their copyright end? They will glady trade our rights and privacy so they get their way and their control over everything, your home and your computer. Why not install cameras in CDs to see if you're using legit ones or copes? This mentality is instulting, unAmerican and just criminal. I want to see Sony reamed in the ass by the courts for this instult to us.

Oh and most CDs I see instores are still like $14-18 dollars. I recently bought some on sale at $10. To me that's a sane price. I admit I did download the albums first using filesharing programs to check them out, but I do enjoy owning a legit copy.

-Xenos

[Lunar Daydreamer]

I download stuff and if I like the album I buy it.

I'm buying more music these days than I ever have, not to mention throwing money at the artists re: merchandise as a result.

The thought of companies like Sony putting viruses in my computer *when I buy something* is just insane.

[Cam63]

Naughty Sony !

Naughty !

[ocelotrevs]

This was done before, and there are about 2 threads on this subject...

Still, Sony are just looking to dig their own graves.

[the4thpip]

Texas Sues Sony Under Anti-Spyware Law

AUSTIN, Texas - The state sued Sony BMG Music Entertainment on Monday under its new anti-spyware law, saying anti-piracy technology the company slipped into music CDs leaves computers vulnerable to hackers.

(...)

Attorney General Greg Abbott accused Sony BMG of surreptitiously installing "spyware" in the form of files that mask other files Sony installed as part of XCP.

This "cloaking" component can leave computers vulnerable to viruses and other security problems, Abbott said, echoing the findings of computer security researchers.

"People buy these CDs to listen to music," Abbott said. "What they don't bargain for is the consumer invasion that is unleashed by Sony BMG."

Security researchers say XCP is spyware because it secretly transmits details about what music the PC is playing. Manual attempts to remove the software, which works only on Windows PCs, can disable the PC's optical drive.
(...)


http://news.yahoo.com/s/ap/20051121/ap_on_hi_te/sony_copy_protection

[The Beast Of Yucca Flats]

They're gonna have to add a new word to the dictionary for this one. "Sleazy" just barely even scratches the surface.

[stealthwise]

Thanks for the warning.

Not that I was planning to buy any of those cds, but it's still nice to know to be wary about putting any music cds on my computer, depending on how this case turns out.

[the4thpip]

Sony BMG's Costly Silence
The label was alerted to the secret, virus-vulnerable software on its CDs long before the scandal broke. Trouble is, it didn’t act immediately to alert consumers

For Sony BMG Music Entertainment, it has become a public-relations nightmare -- and it shows no signs of abating. On Oct. 31, computer-systems expert Mark Russinovich posted a message on his blog revealing that Sony BMG had placed anti-piracy software on music CDs that was difficult to detect and that made customers' PCs vulnerable to hacker attacks (see BW Online, 11/17/05, "Sony's Copyright Overreach").

Since then, Sony BMG has been the subject of countless unflattering news reports and has been vilified in the blogosphere. On Nov. 21, Texas Attorney General Greg Abbott filed suit alleging that the label is violating the state's consumer-protection laws, and New York's bulldog attorney general, Eliot Spitzer, also is looking into the matter (see BW Online, 11/29/05, "Spitzer Gets on Sony BMG's Case").

The flap has raised questions as to what Sony BMG knew -- and when the joint venture of Sony (SNE ) and Germany's Bertelsmann knew it. Computer-security experts say the company's response is a cautionary tale for other entertainment companies hoping to make use of copyright-protection software.

SLOW TO ACT? Sony BMG is in a catfight with a well-known computer-security outfit that became aware of the software problem on Sept. 30 and notified the music company on Oct. 4 -- nearly a month before the issue blew up. F-Secure, a Finland-based antivirus company that prides itself on being the first to spot new malware outbreaks, says Sony BMG didn't understand the software it was introducing to people's computers and was slow to react.

"If [Sony] had woken up and smelled the coffee when we told them there was a problem, they could have avoided this trouble," says Mikko H. Hypponen, F-Secure's director of antivirus research.

Sony BMG officials insist that they acted as quickly as they could, and that they expected to be able to go public and offer a software patch at the same time. However, Russinovich posted his blog item first, forcing Sony BMG to scramble to contain the crisis. It recalled millions of CDs recorded by 52 artists, including Van Zant, Celine Dion, and Neil Diamond. Plus, it offered exchanges to customers. "We're very, very sorry for the disruption and inconvenience that this has caused to music consumers," says Thomas Hesse, president of Sony BMG's Global Digital Business.

Computer-security experts call Sony BMG's travails a wake-up call for the entertainment industry. The message: Know your technology lest it trip you up. Sony BMG outsourced the job of writing the software to a small British consultancy called First4Internet Ltd. The resulting program, called XCP, made it possible for hackers to hide malicious code in customers' PCs. Security experts say Sony BMG's second mistake was effectively loading the software onto customers' computers without telling them exactly what the software did (see BW Online, 11/29/05, "Rooting Out Sony BMG's Rootkit").

"A DESPERATE ATTEMPT." Some say this episode shows that the recording industry's attempts to use digital-rights management software to stem the tide of piracy is fatally flawed. "Making digital files not copyable is like making water not wet," says Bruce Schneier, chief technology officer at security consulting firm Counterpane Internet Security. "You can't do it. DRM is a desperate attempt to cling to their old business model. They have to figure out how to make money in the new world."

It didn't take a computer scientist with a PhD to sniff out Sony BMG's software glitch. It was spotted by John Guarino, owner of TecAngels.com, a two-person PC-repair outfit in midtown Manhattan. Guarino had for months been removing a pesky piece of so-called rootkit software found on clients' PCs. After investigating, he discovered that it was Sony BMG's software. His "Aha!" moment came on Sept. 30 when he loaded a CD by pop singer Amerie onto his laptop computer and confirmed that the offending software came with it.

"This was really bad," he says. "The worst thing you can have on your computer right now is a rootkit, and Sony was installing it on people's computers."

That's when F-Secure got into the act. Guarino sent an e-mail to the Finnish company, since it makes the rootkit-detector software that he used to investigate. F-Secure did its own investigation and notified Sony DADC, which manufactures Sony BMG CDs, on Oct. 4. Sony BMG says the e-mail, which was forwarded to it on Oct. 7, didn't signal a serious security issue. F-Secure said its rootkit-detection software had spotted a potential rootkit in XCP.

CONFLICTING ACCOUNTS. "This e-mail, which we have also reviewed, seems to be about a routine matter," says Hesse. "While it did introduce the notion of a 'rootkit,' it did not suggest that this software was anything but benign."

Nevertheless, Sony BMG asked First4Internet to investigate. Both Sony BMG and F-Secure say that it was on Oct. 17 that F-Secure first spelled out the full scope of the problem to Sony. The security company's report on the matter, sent that day to First4Internet and Sony BMG, confirmed there was a rootkit in XCP and warned that it made it possible for hackers to hide viruses and protect them from antivirus software products. F-Secure referred to XCP as a "major security risk," according to a copy of the e-mail supplied to BusinessWeek Online by F-Secure.

Sony BMG says it asked the two software companies to investigate and find a solution to the problem. "From the moment our people learned that F-Secure had identified a potential problem we contacted our vendor and in no uncertain terms told them you have to get with F-Secure and find out what needs to be done about it," says Daniel Mandil, Sony BMG's general counsel.

BOGGED DOWN. What happened next is in dispute. F-Secure had a conference call with executives of First4Internet on Oct. 20. It says First4Internet argued that there was no real problem because only a few people knew of the vulnerability XCP created, and said an update of the XCP software, due out early next year, would fix the problem on all future CDs.

A person manning the phones at First4Internet's British offices said the company would not comment on the matter, and Sony BMG said it doesn't know what was said during that phone conference, since none of its employees participated.

Next, F-Secure and Sony BMG held their own conference call. F-Secure says Sony BMG didn't seem inclined to do anything about the CDs that were already in circulation. "We told them it was a major security risk," says Santeri Kangas, F-Secure's director of research, who was on the call. "They thought we were silly. They wanted to keep the problem quiet." Sony BMG disputes this account.

"Both of these vendors were put together to create a solution, a patch that would obviously culminate in a public announcement," says Sony BMG spokesman John McKay. Sony BMG planned to fix the glitch as soon as possible and to immediately make available a software patch that customers could download onto their computers to protect their machines from hackers. After Oct. 20, however, F-Secure and First4Internet made little progress because they couldn't agree on the terms of a nondisclosure agreement.

POST MORTEM. Meantime, F-Secure decided against going public, but blogger Russinovich, who had found the XCP problem on his own, felt no such restraint. "I felt this was an issue that would be best addressed more quickly and thoroughly if handled in a public forum," he says. "I accomplished what I set out to do, which was raising awareness."

Security experts say within a week of Russinovich's revelations, hackers had produced viruses designed to exploit the software. Sony's patch was available by then, and there have been no reports of a virus outbreak.

Since the blowup, Sony BMG has been analyzing what transpired in search of what it should have done differently. It might have tested more, Hesse says. "Right now, we are in the process of reviewing all of these initiatives," Hesse notes. Mandil, the general counsel, says Sony BMG did all the right things.

ESSENTIAL LESSON. "We have taken this matter very seriously and have taken numerous steps, including issuing a software update, and creating and implementing an ambitious exchange program, to reach out to consumers and make this situation right," says McKay.

Sony BMG's response is not likely to satisfy all of its customers -- and certainly not the bloggers who are calling for a consumer boycott. The best lesson that Sony BMG -- and the music industry -- can take away is to be more vigilant when it comes to the software they ask customers to load onto computers.

http://www.businessweek.com/technology/content/nov2005/tc20051129_938966.htm

[TheLyle]

The part that got me most in following this story was to hear that the president of Sony Music dismissed the concerns in an interview saying "Most people don't even know what a rootkit is."

Okay. I know I'm slightly more computer literate than average and, while I usually have to ask someone what a rootkit is, I know that it's commonly used by hackers who want more access to my machine than I typically give myself.

And seriously, our bad thing isn't so bad because people don't realize how bad it is? Sounds like it's only the PR issues that mattered to Sony, that the only bad thing about possibly harming their customers' machines is that it would make them look bad.

Sigh. :mad:

[Lunar Daydreamer]

I noticed something installing when I got the new Butch Walker cd :mad:

[heystacy]

That's why people hate big comapnies. they do all this dirty ish, and expect people to roll over. Sony knew better. I don't mind paying for songs. I shop at iTunes all the time. I buy cd's sometimes, but this makes me feel uneasy. Even wores this sleasy company is monitoring us and our habits.

[PatrickG]

Normally, I'd find this in poor taste but anything designed to keep Celine Dion and Ricky Martin's music from spreading can't be a bad thing. ;)

[heystacy]

Normally, I'd find this in poor taste but anything designed to keep Celine Dion and Ricky Martin's music from spreading can't be a bad thing. ;)


ROFL!!!!! You see the brighter side of this tragedy. Good points.

[Draconomicon]

Music labels losing sales over DRM
11/28/2005 12:20:03 PM, by Nate Anderson

It's not news that consumers hate DRM, especially the kind that keeps Little Johnny from ripping that Velvet Revolver disc to his iPod on Christmas morning. What is interesting, though, is how little the major record labels care. As reported a few weeks back, Thomas Hesse, President of Sony BMG's global digital business division, told NPR that consumers didn't understand his company's DRM... and therefore didn't care.

Hesse had reason to feel this way; DRM has had little effect on sales so far. From a business perspective, the Velvet Revolver disc, for example, was a smashing success. It may have annoyed Little Johnny, but it sold by the truckload. Their album Contraband shot to the top of the charts, becoming the first disc with DRM to hold the number one sales spot in the US. The lesson to RIAA members was simple: everyone loves DRM.

Not anymore. A recent story in the E-Commerce Times suggests that the labels are now losing customers to their aggressive DRM tactics. The article suggests that in Canada, at least, customers have started to shy away from those "copy-controlled" logos. Even some in the music business see the current strategy as short-sighted. Terri McBride, president of Canadian label Nettwerk, argues that

"The average consumer who's not tech-savvy is going to buy the CD, thinking that they can load it onto their iPod ... They're going to be royally pissed off."

McBride then shows himself a keen student of business by adding,

"Why do you want to piss off the people who buy?"

Indeed.

Although the E-Commerce Times piece is anecdotal, their conclusions are borne out in the recent "rootkit" debacle that Hesse insisted did not matter to people. A Businessweek article suggests otherwise, documenting how Van Zant's Get Right with the Man fell in Amazon's rankings from 887 to 1392 to 25,802 to "unavailable" in less than three weeks after the rootkit was revealed. Consumers are waking up, and they don't like what they see.

The most interesting thing about the DRM war currently underway is that it might not even need to be fought. The industry's tactics are not designed to restrict commerical piracy, but file-swapping. However, a 2004 Harvard/UNC study found that the music industry's Chicken Little claims of apocalyptic destruction were, ahem, overstated. From the abstract:

"Downloads have an effect on sales which is statistically indistinguishable from zero."

A more recent study from Harvard economics student David Blackburn complicates this rosy scenario somewhat. Blackburn argues that file-swapping does affect CD buying--but not equally. The most popular artists see a loss in sales, but those who are more obscure actually get a boost from free distribution over P2P networks. This is bad news for Velvet Revolver, but excellent news for Dolorean.

The music industry needs to adjust to this new reality, because it's here to stay. The BBC reports that a whole generation of Europeans no longer see music as something that ought to be paid for. Jupiter analyst Mark Mulligan warns that children are being raised on a "limitless diet of free and disposable music." He sees this, unsurprisingly, as a Bad Thing (tm), but only time will tell if file-swapping music lovers are shooting themselves in the foot by putting the labels out of business, or whether they are making possible the growth of a new, artist-driven economy where even niche bands can earn a living.
http://arstechnica.com/news.ars/post/20051128-5635.html

---------
I've actually read that yes, while big names loose buyers (not a surprise with the money a single Cd nowadays costs...), the small studios and artists actually have an increase in sold CDs.

Personally, I feel that is a good thing, as it promotes growth instead of simply allowing the Big Studios to feed us the Boybands and fad of the year to get our money.

Also:

Record Sales Up. Credit File Sharing
By Richard Menta 3/23/05

For the last few years the record industry has experienced drops in CD sales and blamed it all on file sharing. All of it.

They did not blame the recession, which conveniently coincided with this sales drop. They did not blame the DVD, which held no floor space in record stores when Napster first appeared in 1999, but now accounts for 50% - as in half - of all the floor space in every record store in the nation (another interesting bit of timing).


Richard Menta

They did not blame a number of other factors that may have accounted for this drop. That's OK, the movie industry also blames file sharing for lost sales and they have never experienced a loss, setting yet another box office record this year.

Now the record industry is reporting a gain. According to the Record Industry Association of America "the number of CDs shipped domestically from record companies to retail distribution channels rose 5.3 percent -- a 2.7 percent increase in value -- in 2004, compared to the previous year".

At the same time as CD shipments jumped, file trading became more popular. According to Big Champagne the numer of US monthly average simultaneous file shareres in January of 2004 was 3,528,419. By November of 2004 that number was up to 5,445,200, almost 2 million simultaneous users more!

If CD sales are up and file sharing is dramatically up AND according to the RIAA there is a direct coorelation between file sharing activity and CD sales then the answer is simple.

File sharing sells CDs.

This is the RIAA's reasoning, not my own, though I have made a strong case for it in articles such as my October 2000 essay " Did Napster Take Radiohead's New Album to Number 1?" and others.

There you have it. File sharing sells CDs. Now repeat it again and tell it to the Supreme Court.

Call it a non-infringing use.
http://www.mp3newswire.net/stories/5002/salesup.html

[Draconomicon]

Physical Sales Continue to Slide as the Digital Market Heats Up
October 3, 2005
Thomas Mennecke


As technological progress moves the human civilization forward, fewer people are finding the clumsy, cumbersome and outmoded compact disc useful these days. The availability of files on the Internet has made this limited storage medium a dubious purchase, as CD image mounting tools such as Daemon Tools or Alcohol 120% easily rectifies the need for such devices.

Although such an assessment has been traditionally more fitting for the computer savvy, the situation is becoming increasingly similar for the mainstream audience. Since the beginning of the new millennium, the MP3 player has virtually eliminated the usefulness of the CD for many individuals. The small, solid-state device is able to take an incredible amount of abuse yet still function flawlessly. More importantly, the MP3 player replaces archaic devices such as the CD changer, as it is capable of storing literally thousands upon thousands of songs. Something no Earthly priced CD changer can do.

So is it any surprise to the music industry their brick and mortar staple is slowly slipping into obscurity?

Apparently it is. The music industry is still complaining that CD sales are down, and have found a wide array of explanations. They’ve even tried suing people, thinking it would somehow motivate them to purchase such outmoded devices. According to a recently published report by the IFPI, or the International Federation of the Phonographic Industry, finds that global physical music sales have continued their five-year slide. According to the IFPI, “music sales fell 1.9% to a retail value of $US 13.2 billion in the first half of 2005, compared to $US 13.4 billion in the same period of 2004.”

Different areas of the world witnessed varying degrees of CD rejection. The United States, by far the largest music market, endured a sales drop of 5.3% in value and 5.7% in units shipped. The United Kingdom also saw CD sales drop, although France offset some physical sale losses with only a 2.7% drop in sales value, but shipments grew by 7.5%.

The news wasn’t good in the Asian/Pacific rim, which saw staggering sales losses in both Japan and Australia.

Although physical sales are down, there is some good news. In addition to the music industry saving a ton of money on car insurance by switching to Geico, digital sales are up – way up. The success of music stores such as iTunes nearly counteracted the continuing decline of CD sales.

According to the IFPI, digital music sales have totaled 790 million US dollars in the first half of 2005. The music industry only saw 220 million US dollars at the same time in 2004. This rapid increase in digital music sales equates to an impressive 6% of total sales. As more people adopt such music acquisition methods, physical sale losses should be completely offset within a year.

While the music industry blames both physical and online piracy, lower prices, a declining DVD audio market, and furries for their diminishing CD market, the answer to many of their problems is staring them square in the eye. The global population is moving forward and is finding that the Internet is solving many of their music needs. This report published by the IFPI screams the CD is no longer the viable piece of technology it was 10 or even 5 years ago. The rest of the world has moved on and is waiting for the music industry to catch up.
http://www.slyck.com/news.php?story=939

---------

Imho the reason for the break down in sales for CD is simply the fact that most of the labels missed the "jump on" point for changing to Internet selling of their songs, which, as reports show, actually catches up to the decline in sold CDs in increase in electronical sold music.

Of course the RIAA and co would NEVER admit to that, since it would derive them of one of their most powerful tools against Filesharing... greedy bunch o bastards.

[The Xenos]

Damn. I like CDs and albums. I rather don't like paying for downloads.

Also, I do blame furries for low CD sales.

-Xenos