News

After posting a round-uphttp://www.stereophile.com/news/110705sony/">round-up; of the news about Sony BMG's F4i's XCP digital rights management system (DRM), which hid itself inside consumers' computers' root-kit code, I spent a frantic week simply trying to keep up with all of the breaking news on the issue on my bloghttp://blog.stereophile.com/wesphillips/">blog;. During the week of November 7, I posted no fewer than 9 URLs outlining breaking news on the Sony story. However, by the end of the week, the company was reeling from the news that hackers had managed to install malware (malicious programs that dismantle a computer's firewall protection) on consumers' computers that masked its presence by using the hidden software placed there by Sony BMG's DRM system.

An old adage has it that "when Sony sneezes, the whole electronics industry catches cold." If that's so, there could be an epidemic brewing. Sony's profits plunged an astounding 98% in the first quarter of its current fiscal year. Thomson, Samsung, and some large retailers also reported big drops.

As we go into our fourth week of coverage of Sony BMG's digital rights management debacle, it's a good time to review what all the fuss has been about. On October 31, Mark Russinovich postedhttp://www.sysinternals.com/blog/2005/10/sony-rootkits-and-digital-righ…; his discovery of a root kit—a cloaked file that had been inserted on to his computer's hard drive. Cloaked root kit files are popular tools used by malevolent hackers, so Russinovich was curious about how the files he detected had entered his computer. It came from Get Right With the Man, a Sony DRM-protected disc Russinovich had purchased and played on his computer. When he attempted to remove the hidden files, Russinovich lost the ability to use his CD drive.

The Super Audio CD is gaining serious momentum.

Treasured as much for her bubbling personality and administrative acumen as for her extraordinary voice, coloratura soprano Beverly Sills died of lung cancer on July 2. One of the finest high-flying sopranos of the latter 20th century, she leaves behind a rich legacy of recordings and an opera scene revitalized by her tireless efforts on behalf of American singers.

Recently, Sound Advice, Inc., a specialty retailer of high-end consumer electronics, announced plans to open five to six stores in Florida over the next 18 months. The company expects that two to three of the stores will be in operation by the end of this calendar year, with the balance to be opened in 1999. Sound Advice is also exploring other ideas, such as smaller-format specialty stores in upscale malls and other high-end retail locations that feature high-quality brand names.

Masimo Corporation has entered into a definitive agreement to sell its Masimo Consumer Audio division, which is made up of the former Sound United hi-fi brands, to Harman International, a subsidiary of Samsung Electronics, for $350 million in cash. Pending regulatory approvals, the transaction is expected to close by the end of 2025.