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Highlights on the Way to a Global Commercial Media Oligopoly: 1990s -1994 Viacom multimedia and industrial corporation takes control of Paramount Communications for US$ 9.6 billion, as well as Blockbuster Entertainment, a huge video store chain, for US$ 8.4. billion. 1995 Entertainment giant Disney buys Capital Cities-ABC for US$ 19 billion. The industrial and broadcasting company Westinghouse Corp. buys out CBS for US$ 5.4 billion. In a US$ 7.2 billion deal, Time Warner acquires Turner Communications, owner of prime cable TV channels CNN, TBS and TNT and a major classic American film library. 1996 Westinghouse/CBS buys Infinity Broadcasting's large group of radio stations. Murdoch and News Corp. acquire ten more TV stations and TV production studios with the US$ 2.5 billion purchase of New World Communications Group. Viacom buys half of UPN-TV network, adding that to its other holdings, which include eleven TV stations, along with MTV, VH-1, and other cable TV channels and Paramount movie studios. 1997 Radio Groups Chancellor Media and Evergreen merge and are linked by ownership with Capstar Broadcasting; they also buy ten radio stations from Viacom. By mid-1997 Chancellor/Capstar controls no fewer than 325 radio stations around the United States. Chancellor/Capstar's controlling ownership group, Hicks Muse Tate & Furst, buys the seventh largest radio group, SFX, adding another seventy-two radio stations, making a total of nearly four hundred stations controlled by this one source. Westinghouse-CBS buys out American Radio Systems, the fourth largest radio chain in total audience, which gives Westinghouse-CBS over 170 radio stations with a total audience nearly equal to that of the Chancellor/Capstar group. Giant European-based print and electronic publishing and data base corporations Reed Elsevier and Wolters Kluwer merge. 1998 Bertelsmann buys the Random House-Alfred A. Knopf-Crown Publishing group of book publishers from Newhouse/Advance Publications, adding to its Bantam-Doubleday-Dell publishing group and giving Bertelsmann by far the largest English-language publishing operations. 1999 AOL, the worlds leading Internet service provider and Time Warner, the worlds leading classical media company merge in a US$ 243.3 billion deal. |
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Digital Commercial Content Starting in the mid 1990s today most traditional media can also be found online. The overwhelming majority of bigger newspapers and periodicals, but also radio and TV stations now complement their classic media formats with digital programming. For the most part they transform existing analogue information in digital form, with some additional features. Especially the big media conglomerates, having realized the economic potential of the Internet, have started to get into the business of digital content. Not surprisingly their engagement in the virtual sphere has not brought much new concerning their programming. They offer entertainment, music, sports and some news channels. One of the reasons for this development might be, that the big commercial media companies are able to re-use already existing programming from their other ventures. Examples are |
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Extract of Disney’s Content Production and Distribution Holdings Although the traditional media companies first steps into the digital sphere were fairly clumsy, they have quickly learned from their mistakes and continued to enlarge their Internet presence. During the last years many of the smaller players in the field of digital media have been driven out of competition by the huge media conglomerates. This mainly is a result of the advantages that the commercial media giants have over their less powerful counterparts:
Commercial media companies have close and long ties to advertisers, which enables them to seize most of these revenues. |
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Governmental Regulations The new U.S. regulations are based on the Wassenaar Arrangement Revision of 1998, where exports without license of 56 bit For more information see: Seven states stay excluded from the new freedom. These are states like Libya, Iraq, Iran, North Korea and Cuba, altogether states seen as terrorist supporting. No encryption tools may be exported into those countries. This is, what happened in the USA, whereas in Germany the issue of a cryptography-law is still on the agenda. Until now, in Germany, everyone can decide by her-/himself, whether she/he wants to encrypt electronic messages or not. Some organizations fear that this could get changed soon. Therefore an urgent action was organized in February 2000 to demonstrate the government that people want the freedom to decide on their own. One governmental argument is that only very few people actually use cryptography. Therefore the urgent action is organized as a campaign for using it more frequently. For more information on this see: Other European countries have more liberate laws on cryptography, like France. Austria doesn't have any restrictions at all, probably because of a governmental lack of interest more than accepting freedom. The (former) restrictions in the bigger countries influenced and hindered developments for safer key-systems, e.g. the key-length was held down extraordinarily. "Due to the suspicious nature of crypto users I have a feeling DES will be with us forever, we will just keep adding keys and cycles (...). There is a parallel between designing electronic commerce infrastructure today that uses weak cryptography (i.e. 40 or 56 bit keys) and, say, designing air traffic control systems in the '60s using two digit year fields. (...) Just because you can retire before it all blows up doesn't make it any less irresponsible." (Arnold G. Reinhold) The Chinese State Encryption Management Commission (SEMC) announced in March 2000 that only strong encryption tools will have to be registered in the future. Which sounds so nice on first sight, does not mean a lot in reality: any kind of useful encryption technique, like the The restrictions and prohibitions for cryptography are part of the states' wish to acquire more control - in the name of the battle against criminality, probably? Due to the emerging organized criminality the governments want to obtain more freedom of control over citizens. Organizations like the NSA appear as the leaders of such demands. What about civil rights or Human Rights? |
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The Privatization of Censorship According to a still widely held conviction, the global data networks constitute the long desired arena for uncensorable expression. This much is true: Because of the Net it has become increasingly difficult to sustain cultural and legal standards. Geographical proximity and territorial boundaries prove to be less relevant, when it does not affect a document's availability if it is stored on your desktop or on a host some thousand kilometers away. There is no international agreement on non-prohibited contents, so human rights organizations and nazi groups alike can bypass restrictions. No single authority or organization can impose its rules and standards on all others. This is why the Net is public space, a political arena where free expression is possible. This freedom is conditioned by the design of the Net. But the Net's design is not a given, as When the World Wide Web was introduced, soon small independent media and human rights organizations began to use this platform for drawing worldwide attention to their publications and causes. It seemed to be the dawning of a new era with authoritarian regimes and multinational media corporations on the looser side. But now the Net's design is changing according to their needs. "In every context that it can, the entertaining industry is trying to force the Internet into its own business model: the perfect control of content. From music (fighting MP3) and film (fighting the portability of DVD) to television, the industry is resisting the Net's original design. It was about the free flow of content; Hollywood wants perfect control instead" (Lawrence Lessig, In the United States, Hollywood and For small independent media it will become very hard to be heard, especially for those offering streaming video and music. Increasingly faster data transmissions just apply to download capacities; upload capacities are much - on the average about eight times - lower than download capacities. As an AT&T executive said in response to criticism: "We haven't built a 56 billion dollar cable network to have the blood sucked from our veins" ( Consumers, not producers are preferred. For corporations what remains to be done to control the Net is mainly to cope with the fact that because of the Net it has become increasingly difficult to sustain cultural and legal standards. On Nov 11, 1995 the German prosecuting attorney's office searched Compuserve Germany, the branch of an international Internet service provider, because the company was suspected of having offered access to child pornography. Consequently Compuserve blocked access to more than 200 Also in 1995, as an attack on US Vice-President Al Gore's intention to supply all public schools with Internet access, Republican Senator Charles Grassley warned of the lurking dangers for children on the Net. By referring to a Time magazine cover story by Philip Elmer-Dewitt from July 3 on pornography on the Net, he pointed out that 83,5% of all images online are pornographic. But Elmer-Dewitt was wrong. Obviously unaware of the difference between Almost inevitably anxieties accompany the introduction of new technologies. In the 19th century it was said that traveling by train is bad for health. The debate produced by Time magazine's cover story and Senator Grassley's attack caused the impression that the Net has multiplied possible dangers for children. The global communication networks seem to be a inexhaustible source of mushrooming child pornography. Later would-be bomb recipes found on the Net added to already prevailing anxieties. As even in industrialized countries most people still have little or no first-hand experience with the Net, anxieties about child pornography or terrorist attacks can be stirred up and employed easily. A similar and related debate is going on about the glorification of violence and erotic depictions in media. Pointing to a "toxic popular culture" shaped by media that "distort children's view of reality and even undermine their character growth", US right-wing social welfare organizations and think tanks call for strong media censorship. (See An Appeal to Hollywood, The intentions for stimulating a debate on child pornography on the Net were manifold: Inter alia, it served the Republican Party to attack Democrat Al Gore's initiative to supply all public schools with Internet access; additionally, the big media corporations realized that because of the Net they might have to face new competitors and rushed to press for content regulation. Taking all these intentions together, we can say that this still ongoing debate constitutes the first and most well known attempt to impose content regulation on the Net. Consequently, at least in Western countries, governments and media corporations refer to child pornography for justifying legal requirement and the implementation of technologies for the surveillance and monitoring of individuals, the filtering, rating and blocking of content, and the prohibition of anonymous publishing on the Net. In the name of "cleaning" the Net of child pornography, our basic rights are restricted. It is the insistence on unrestricted basic rights that needs to be justified, as it may seem. Underlying the campaign to control the Net are several assumptions. Inter alia: The Net lacks control and needs to be made safe and secure; we may be exposed inadvertently to pornographic content; this content is harmful to children. Remarkably, racism seems to be not an issue. The Net, especially the World Wide Web, is not like television (although it is to be feared this is what it might become like within the next years). Say, little Mary types "Barbie" in a search engine. Click In reaction to these anxieties, but in absence of data how children use the Internet, the US government released the Communications Decency Act (CDA) in 1996. In consequence the So, after the failing of the CDA the US government has shifted its responsibility to the industry by inviting corporations to taking on governmental tasks. Bearing in the mind the CompuServe case and its possible consequences, the industry welcomed this decision and was quick to call this newly assumed responsibility "self-regulation". Strictly speaking, "self-regulation" as meant by the industry does not amount to the regulation of the behaviour of corporations by themselves. On the opposite, "self-regulation" is to be understood as the regulation of users' behaviour by the rating, filtering and blocking of Internet content considered being inappropriate. The Internet industry tries to show that technical solutions are more favourable than legislation und wants to be sure, not being held responsible and liable for illegal, offensive or harmful content. A new CompuServe case and a new Communications Decency Act shall be averted. In the Memorandum In fact, the "self-regulation" of the Internet industry is privatized censorship performed by corporations and right-wing NGOs. Censorship has become a business. "Crucially, the lifting of restrictions on market competition hasn't advanced the cause of freedom of expression at all. On the contrary, the privatisation of cyberspace seems to be taking place alongside the introduction of heavy censorship." ( While trying to convince us that its technical solutions are appropriate alternatives to government regulation, the Internet industry cannot dispense of governmental backing to enforce the proposed measures. This adds to and enforces the censorship measures already undertaken by governments. We are encouraged to use today's information and communication technologies, while the flow of information is restricted. According to a report by Reporters Sans Frontières, quoted by Leonard R. Sussman in his essay |
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Commercial vs. Independent Content: Human and Financial Resources Concerning their human and financial resources commercial media and independent content provider are an extremely unequal pair. While the 1998 revenues of the world's leading media conglomerates (AOL Time Warner, Disney, Bertelsmann, Viacom and the News Corporation) amounted to US$ 91,144,000,000 provider of independent content usually act on a non-profit basis and to a considerable extent depend on donations and contributions. Also the human resources they have at their disposal quite differ. Viacom for example employs 112,000 people. Alternative media conversely are mostly run by a small group of activists, most of them volunteers. Moreover the majority of the commercial media giants has a multitude of subsidiaries (Bertelsmann for instance has operations in 53 countries), while independent content provider in some cases do not even have proper office spaces. Asked about their offices number of square meters Frank Guerrero from RTMark comments "We have no square meters at all, because we are only on the web. I guess if you add up all of our servers and computers we would take up about one or two square meters." |
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Doubls Bind Messages Double bind messages are extremely effective. For example in Nicaragua the By the end of the 1980s the USA even paid Nicaraguans for voting other parties than the Sandinistas. El Salvador was a similar case. Again the guerrilla got demonized. The difference was the involvement of the Catholic Church, which was highly fought against by the ruling parties of El Salvador - and those again were financially and organizationally supported by the USA. The elections in the 1980s were more or less paid by the USA. U.S.-politicians were afraid El Salvador could end up being a second Cuba or Nicaragua. Every means was correct to fight this tendency, no matter what it cost. On the 21st of September 1996, the |
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Satellites Communications satellites are relay stations for radio signals and provide reliable and distance-independent high-speed connections even at remote locations without high-bandwidth infrastructure. On point-to-point transmission, the transmission method originally employed on, satellites face increasing competition from In the future, satellites will become stronger, cheaper and their orbits will be lower; their services might become as common as satellite TV is today. For more information about satellites, see How Satellites Work ( |
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ARPAnet ARPAnet was the small network of individual computers connected by leased lines that marked the beginning of today's global data networks. Being an experimental network mainly serving the purpose to test the feasibility of In 1969 ARPANET went online and links the first two computers, one of them located at the University of California, Los Angeles, the other at the Stanford Research Institute. But ARPAnet has not become widely accepted before it was demonstrated in action to a public of computer experts at the First International Conference on Computers and Communication in Washington, D. C. in 1972. Before it was decommissioned in 1990, In the USA commercial users already outnumbered military and academic users in 1994. Despite the rapid growth of the Net, most computers linked to it are still located in the United States. |
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Assembly line An assembly line is an industrial arrangement of machines, equipment, and workers for continuous flow of workpieces in |
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1996 WIPO Copyright Treaty (WCT) The 1996 |
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America Online Founded in 1985, America Online is the world's biggest Internet service provider serving almost every second user. Additionally, America Online operates CompuServe, the Netscape Netcenter and several AOL.com portals. As the owner of Netscape, Inc. America Online plays also an important role in the Web browser market. In January 2000 America Online merged with Time Warner, the worlds leading media conglomerate, in a US$ 243,3 billion deal, making America Online the senior partner with 55 percent in the new company. |
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Coca-Cola Company American corporation founded in 1892 and today engaged primarily in the manufacture and sale of syrup and concentrate for Coca-Cola, a sweetened, carbonated beverage that is a cultural institution in the United States and a symbol around the world of American tastes. The company also produces and sells other soft drinks and citrus beverages. Corporate headquarters are in Atlanta, Ga. The post-World War II years saw diversification in the packaging of Coca-Cola and also in the development or acquisition of new products. In 1946 the company purchased rights to the Fanta soft drink, previously developed in Germany. It introduced the lemon-lime drink Sprite in 1961 and the sugar-free cola Tab in 1963. By purchase of Minute Maid Corporation in 1960, it entered the citrus beverage market. In 1982 the company acquired a controlling interest in Columbia Pictures, a motion picture and entertainment company, but sold its interest to Sony Corporation in 1989. |
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Whitfield Diffie Whitfield Diffie is an Engineer at Sun Microsystems and co-author of Privacy on the Line (MIT Press) in 1998 with Susan Landau. In 1976 Diffie and |
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NSFNet Developed under the auspices of |
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Electronic Messaging (E-Mail) Electronic messages are transmitted and received by computers through a network. By E-Mail texts, images, sounds and videos can be sent to single users or simultaneously to a group of users. Now texts can be sent and read without having them printed. E-Mail is one of the most popular and important services on the Internet. |
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Cheltenham Analysts at the Government Communications Headquarters in Cheltenham process the mass of intercepted satellite communications produced by their sophisticated interception system, especially from Morwenstow and Menwith Hill. At the headquarters personel use advanced computer hardware and the Dictionary system. |
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