The security flaws inherent in Sony BMG’s DRM left users open to attack, and the DRM collected data about users’ private activities without proper disclosure. […] The rootkit incident threatened both the security of the network infrastructure and the future of DRM technology.
The outcry from fans, artists, and consumer advocates alike gave rise to a palpable shift in the public perception of Sony BMG and its parent corporations.
So thanks to Sony for providing DRM a face in the public eye!
By dramatically increasing public awareness of the restrictions on access and copying imposed by DRM technologies, while simultaneously corroding consumer confidence in their safety, the rootkit incident likely undermined the significant investments of both content providers and protection measure vendors in such technology. In the wake of the rootkit fiasco, major labels abandoned the use of DRM on CDs,91 and leading protection measure vendors ceased development of new CD-based DRM systems.
In short, a company turned against their customers and ended up screwing themselves.