CDs, DVDs, Blu Ray, Vinyl And Equipment Burned To A Crisp
Sony CEO Howard Stringer
Reports indicate the 1,500,000 CDs and an as yet unnumbered amount of DVDs, stored in the Sony warehouse in Canning Town, London that was torched in a massive blaze this week, are reportedly not covered by insurance, due to the incident having transpired during riots.
A large number of blank discs Sony uses to make CDs, DVDs and Blu Ray products, were also incinerated in the fire, resulting in a shortage. Firefighters have battled the blaze for three days, as they've been dismantling the large, charred building, to reach a segment of the structure that is still emitting smoke. Three teens were arrested yesterday in connection with the blaze.
Sony has been having a very difficult time with insurance adjusters of late. Case in point, after a collective of hackers completely hacked the Sony websites, stole financial and personal data of 100,000,000 customers, creating billions in losses for the company, their insurance company sued, stating they are not paying Sony, as the incident occurred due to their negligence and poor security practices.
It was later revealed, Sony kept customers' valuable financial data and personal information on unencrypted servers, containing outdated firewalls and next to no security. They had the funds to provide good security, but Stringer's cockiness and cheapness in cutting corners caught up with the company.
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STORY SOURCE
Fire Destroys U.K. Record Distribution Center, Millions Of CDs Lost
4:40 pm August 9, 2011 - ...Collinson adds that he's unsure whether Ninja Tune's insurance will cover the damage. "Riot damage normally isn't insured," he says.
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