On-line Advertising and the Internet Content Industry

Applied to on-line content the advertising model leads to similar problems like in the traditional media. Dependence on advertising revenue puts pressure on content providers to consider advertising interests. Nevertheless new difficulties caused by the technical structure of online media, missing legal regulation and not yet established ethical rules, appear.

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The Cassini Case

In 1997 NASA's Cassini mission to Saturn and its moons led to heated controversies, because it was fueled by plutonium, a substance that could cause serious environmental and health problems if it were released into the atmosphere.

Still no major U.S. news outlet in broadcasting or print reported in depth on the risks of the Cassini mission. Westinghouse-owned media like CBS and NBC (also partly owned by General Electric) for example had only reported that children were invited to sign a plaque inside Cassini. Not surprisingly Westinghouse and General Electric are two of the largest corporations with defense contracts and nuclear interests.

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On-line Advertising Revenues

Although Internet advertising only really started in 1994, revenues showed a steady and fast growth. In 1997 US$ 906.5 million were spent on on-line advertising. Compared with advertising revenue for the television industry in equivalent dollars for its third year, the Internet was slightly ahead, at US$ 907 million compared to television's US$ 834 million. 1998 on-line advertising grew by 112 percent to US$ 1.92 billion in revenues, and is on track to hit US$ 4 billion in 1999, which would put Internet advertising at about 2 percent of the U.S. ad market.

Table: Spending on On-Line Advertising by Category

(first quarter 1999)

Category

Percent

Consumer-related

27 %

Financial services

21 %

Computing

20 %

Retail/mail order

13 %

New media

8 %



Table: Types of On-Line Advertising

(first quarter 1999)

Type of Advertising

Percent

Banners

58 %

Sponsorships

29 %

Interstitials

6 %

E-mail

1 %

Others

6 %



Source: Internet Advertising Bureau (IAB).

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Virtual cartels; mergers

In parallel to the deregulation of markets, there has been a trend towards large-scale mergers which ridicules dreams of increased competition.

Recent mega-mergers and acquisitions include

SBC Communications - Ameritech, $ 72,3 bn

Bell Atlantic - GTE, $ 71,3

AT&T - Media One, $ 63,1

AOL - Time Warner, $ 165 bn

MCI Worldcom - Spring, $ 129 bn

The total value of all major mergers since the beginnings of the 1990s has been 20 trillion Dollars, 2,5 times the size of the USA's GIP.

The AOL- Time Warner reflects a trend which can be observed everywhere: the convergence of the ICT and the content industries. This represents the ultimate advance in complete market domination, and a alarming threat to independent content.

"Is TIME going to write something negative about AOL? Will AOL be able to offer anything other than CNN sources? Is the Net becoming as silly and unbearable as television?"

(Detlev Borchers, journalist)

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Timeline BC

~ 1900 BC: Egyptian writers use non-standard Hieroglyphs in inscriptions of a royal tomb; supposedly this is not the first but the first documented example of written cryptography

1500 an enciphered formula for the production of pottery is done in Mesopotamia

parts of the Hebrew writing of Jeremiah's words are written down in "atbash", which is nothing else than a reverse alphabet and one of the first famous methods of enciphering

4th century Aeneas Tacticus invents a form of beacons, by introducing a sort of water-clock

487 the Spartans introduce the so called "skytale" for sending short secret messages to and from the battle field

170 Polybius develops a system to convert letters into numerical characters, an invention called the Polybius Chequerboard.

50-60 Julius Caesar develops an enciphering method, later called the Caesar Cipher, shifting each letter of the alphabet an amount which is fixed before. Like atbash this is a monoalphabetic substitution.

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The third industiral revolution. Life as a product.

Many years ago, the German philosopher Günther Anders already described the historical situation in which the homo creator and homo materia coincide as the "third industrial revolution". Anders, who spent many years exiled in the USA after fleeing from the Nazis, made issue of the ambivalence of modern science and technology as early as in the 1950s, and many of the concerns which today form part of the debates around the implications of computer technology are already polemically discussed in his work.

The "third industrial revolution" is characterized by men becoming the "raw material" of their own industries. Product and producer, production and consumption, technology and nature are no longer meaningful pairs of opposites. The third is also the last revolution, as it is difficult to think of further revolutions when the distinction between subject and object becomes blurred. The world is becoming a Bestand and the human body and mind are no protected zones. They are something like the last safety zone of human being which is now itself becoming a basis for technological innovation. When the subject is weakened by its technical environment, the use of technical crooks for body and mind becomes an obvious "solution", even if the technically strengthened subject is strengthened at the cost of no longer being a "subject" in the traditional, metaphysical sense. Biological processes are dissected and subjected to technical control. This technical control is technical in two senses: it is not only control through technology but by ttechnology itsself, since it is not carried out by unaided human minds, but increasingly by intelligent machines.

The point where this Andersian third industrial revolution reaches an unprecedented logic seems to lie within the realm of genetic engeneering. This example shows that the dissection of humanness - the decoding of genetic information - is tantamount to commodification. The purpose of the commercial genetic research projects is the use of genetic information as a resource for the development of new products, e.g. in pharmaceutics. Genetic products carry the promise of offering a solution to so-far uncurable diseases such as cancer, Alzeheimer, heart disorders, schizophrenia, and others, but they also open up the possibility of "breaking the chains of evolution", of actively manipulating the genetic structure of human beings and of "designing" healthy, long-living, beautiful, hard-working etc. beings. Here, the homo creator and the homo materia finally become indistinguishable and we are being to merge with our products in such a way that it "we" loses the remains of its meaning.

Since 1990 research on human genetics is organised in the Human Genome Project where universities from various countries cooperate in transcribing the entire genetic information of the predecessor of the homo sapiens , composed of 80,000 genes and more than 3 billion DNA sequences. The objective of the project is to complet the transcription process by the year 2003. One of the rationales of organising Genome research in an international fashion has been its extremely high cost, and also an ethical consideration, according to which human genetic information must not be a private property, which would be the case when genetic information becomes patentised.

But exactly this patentising is of paramount importance in the emerging "post-industrial" society where knowledge becomes the most important resource. A patent is nothing else than a property title to a piece of "know-how", and an necessary consequence commodification. When life no longer simply a natural creation but a product, it, too, will be patented and becomes a commodity.

Against the idea of the human genome as a public good, or an "open source", there is a growing competion on the part of private industry. Companies such as Celera deloped deciphering technologies which may allow an earlier completion of the project. In the case that human genetic information actually becomes patentised, then the technical possibility of interfering in human evolution would at leasst be partly in the hands of private business. What has been called a "quintessentially public resource" Iceland. In this nordic country, the government decided to allow the American genetics company DeCode to access and commercially exploit the anonymised genetic information of the entire population of Iceland. The Icelandic population provides a particularly good "sample" for research, because there has been almost no immigration since the times of the Vikings, and therefore genetic variations can be more easily detected than in populations with a more diverse genome. Also, Iceland possesses a wealth of genealogical information - many families are able to trace their origins back to the 12th century. Here modern science has found optimal laboratory conditions. Perhaps, had European history taken a different course in the 1930s and 40s, the frontier of commercial gentetic research would have found optimal conditions in an "ethnically clean" centre of Euorpe? The requirement of "purity", of "eliminating" difference prior to constructing knowledge, inscribed in the modern science since its beginnings, also applies to genome research. Except that in this kind of research humankind itself needs to fulfill laboratory standards of cleanliness, and that the biological transcription of humanness, the biological "nucleus" of the species, becomes the object of research, much like the nucleus of matter, the atom, in the 1940s and 50s.

But the commodification of life is not limited ot the human species. Genetically altered animals and plants are also suffering the same fate, and in most industrialised nations it is now possible to patent genetically engeneered species and crops. The promises of the "Green Revolution" of the 1960s are now repeated in the genetic revolution. Genetic engeneering, so it is argued, will be able to breed animals and plants which resist disease and yield more "food" and will therfore help to tackle problems of undernutrition and starvation. Companies such as Monsanto are at the forefront of developing genetically altered ("enhanced") food crops and promise to solve not only the problem of world hunger, but to improve the safety and even the taste of food. Convinced of the opposite of such high-flown promises, Vandana Shiva from the Indian Research Foundation for Science, Technology and Ecology emphasises the relationship between post-colonial style exploitation of so-called "third world" countries. She also stresses the adverse ecological impact of biotechnology: "Today, the world is on the brink of a biological diversity crisis. The constantly diminishing store of biodiversity on our planet poses an enormous environmental threat"http://www.cnn.com/bioethics/9902/iceland.dna/template.html, 22 February 1999

http://www.indiaserver.com/betas/vshiva/title.htm, 9 February 2000

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Sponsorship Models

With new sponsorship models being developed, even further influence over content from the corporate side can be expected. Co-operating with Barnes & Nobel Booksellers, the bookish e-zine FEED for instance is in part relying on sponsoring. Whenever a specific title is mentioned in the editorial, a link is placed in the margin - under the heading "Commerce" - to an appropriate page on Barnes & Noble. Steve Johnson, editor of FEED, says "We do not take a cut of any merchandise sold through those links.", but admits that the e-zine does indirectly profit from putting those links there.

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The Rocky Horror Picture Show

The story of Frank-N-furter, Brad and Janet ... Don't dream it, be it!

http://www.rockyhorrorpictureshow.com/

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Günther Anders

Born in Germany in 1913, Günther Anders spent the Nazi period exiled in the USA where he stayed until 1950. His chief work Die Antiquiertheit des Menschen is an extensive analysis of human existence in a technised world. Among the most outstanding theses of Anders is the concept a permanent gap between the potential of technical artefacts and the human mind's power to imagine the consequences of technology. Men think of themselves as "antiquated" in comparison to their artefacts, and feel "promethean embarrassment". Anders was among the first thinkers to react to the Holocaust and the dropping of the Atomic bomb. The ethical quandaries resulting from the latter are documented in an exchange of letters between Anders and Claude Eatherly, the pilot of the Hiroshima plane, in Burning Conscience.

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The World Wide Web History Project

The ongoing World Wide Web History Project was established to record and publish the history of the World Wide Web and its roots in hypermedia and networking. As primary research methods are used archival research and the analysis of interviews and talks with pioneers of the World Wide Web. As result a vast of collection of historic video, audio, documents, and software is expected. The project's digital archive is currently under development.

http://www.webhistory.org/home.html

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NSFNet

Developed under the auspices of the National Science Foundation (NSF), NSFnet served as the successor of the ARPAnet as the main network linking universities and research facilities until 1995, when it was replaced it with a commercial backbone network. Being research networks, ARPAnet and NSFnet served as testing grounds for future networks.

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Sputnik

At the beginning of the story of today's global data networks is the story of the development of satellite communication.

In 1955 President Eisenhower announced the USA's intention to launch a satellite. But it was the Soviet Union, which launched the first satellite in 1957: Sputnik I. After Sputnik's launch it became evident that the Cold War was also a race for leadership in the application of state-of-the-art technology to defence. As the US Department of Defence encouraged the formation of high-tech companies, it laid the ground to Silicon Valley, the hot spot of the world's computer industry.

In the same year the USA launched their first satellite - Explorer I - data were transmitted over regular phone circuits for the first time, thus laying the ground for today's global data networks.

Today's satellites may record weather data, scan the planet with powerful cameras, offer global positioning and monitoring services, and relay high-speed data transmissions. But up to now, most satellites are designed for military purposes such as reconnaissance.

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cryptoanalysis

the study of breaking others' codes to transform a message back into a legible form without knowing the key from the beginning

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