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 Viacom's MTV Network, which now has a twin online or Time Warner's CNN, which on the Web is called CNN Interactive. Considering business economic factors this move suggests itself as hardly any further resources are needed and the already existing programming can be put in the Internet at little extra cost. Also, regarding the undeniable success of their traditional content in terms of revenue generation the digital reproduction of their classic programming concept seems to be an obvious step.

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Asymmetric or Public-Key-Cryptosystems

Here the keys for encryption and decryption differ. There needs to exist a private key, which is only known to the individual, and a public key, which is published. Every person has her or his own private key that is never published. It is used for decrypting only. Mathematically the different keys are linked to each other, still it is nearly impossible to derive the private key from the public one.
For sending a message to someone, one has to look up the other's public key and encrypt the message with it. The keyholder will use his/her private key to decrypt it. While everybody can send a message with the public key, the private key absolutely has to stay secret - and probably will.

"The best system is to use a simple, well understood algorithm which relies on the security of a key rather than the algorithm itself. This means if anybody steals a key, you could just roll another and they have to start all over." (Andrew Carol)

very famous examples for public-key systems are:

· RSA:
The RSA is probably one of the most popular public-key cryptosystems. With the help of RSA, messages can be encrypted, but also digital signatures are provided.
The mathematics behind are supposedly quite easy to understand (see: http://world.std.com/~franl/crypto/rsa-guts.html.

· PGP:
PGP is a public key encryption program. Most of all it is used for e-mail encryption.
It is supposed to be quite safe - until now.

· PGPi is simply the international variation of PGP.

for further information about the RSA and other key-systems visit the RSA homepage:
http://www.rsa.com/rsalabs/faq/
http://www.rsa.com/rsalabs/faq/questions.html
or:
http://www.pgpi.org

All of those tools, like hash functions, too, can help to enhance security and prevent crime.
They can theoretically, but sometimes they do not, as the example of the published credit card key of France in March 2000 showed.
For more information see:
http://news.voila.fr/news/fr.misc.cryptologie

Still, cryptography can help privacy.
On the other hand cryptography is only one element to assure safe transport of data. It is especially the persons using it who have to pay attention. A key that is told to others or a lost cryptographic key are the end of secrecy.

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The Secret Behind

The secret behind all this is the conception that nothing bad could ever be referred to the own nation. All the bad words belong to the enemy, whereas the "we" is the good one, the one who never is the aggressor but always defender, the savior - not only for ones own sake but also for the others, even if they never asked for it, like the German population during World War I and II.
The spiritualization of such thinking leads to the point that it gets nearly impossible to believe that this could be un-true, a fake. To imagine injustice committed by the own nation gets more and more difficult, the longer the tactic of this kind of propaganda goes on. U.S.-Americans voluntarily believe in its politics, believing also the USA works as the police of the world, defending the morally good against those who just do not have reached the same level of civilization until today.
To keep up this image, the enemy must be portrayed ugly and bad, like in fairy-tales, black-and-white-pictures. Any connection between oneself and the enemy must be erased and made impossible. In the case of Slobodan Milosevic or Saddam Hussein this meant to delete the positive contact of the last years from the consciousness of the population. Both had received a high amount of money and material help as long as they kept to the rules of the Western game. Later, when the image of the friend/confederate was destroyed, the contact had to be denied. The media, who had reported that help, no longer seemed to remember and did not write anything about that strange change of mind. And if any did, they were not really listened to, because people tend to hear what they want to hear. And who would want to hear that high amounts of his taxes had formerly gone to "a man" (this personification of the war to one single man is the next disinformation) who now is the demon in one's mind.

All of this is no invention of several politicians. Huge think tanks and different governmental organizations are standing behind that. Part of their work is to hide their own work, or to deny it.

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1960s - 1970s: Increased Research in Artificial Intelligence (AI)

During the cold war the U.S. tried to ensure that it would stay ahead of the Soviet Union in technological advancements. Therefore in 1963 the Defense Advanced Research Projects Agency (DARPA) granted the Massachusetts Institute of Technology (MIT) U.S.$ 2.2 million for research in machine-aided cognition (artificial intelligence). The major effect of the project was an increase in the pace of AI research and a continuation of funding.

In the 1960s and 1970s a multitude of AI programs were developed, most notably SHRDLU. Headed by Marvin Minsky the MIT's research team showed, that when confined to a small subject matter, computer programs could solve spatial and logic problems. Other progresses in the field of AI at the time were: the proposal of new theories about machine vision by David Marr, Marvin Minsky's frame theory, the PROLOGUE language (1972) and the development of expert systems.

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The 17th Century: The Invention of the First "Computers"

The devices often considered the first "computers" in our understanding were rather calculators than the sophisticated combination of hard- and software we call computers today.

In 1642 Blaise Pascal, the son of a French tax collector, developed a device to perform additions. His numerical wheel calculator was a brass rectangular box and used eight movable dials to add sums up to eight figures long. Designed to help his father with his duties, the big disadvantage of the Pascaline was its limitation to addition.

Gottfried Wilhelm von Leibniz, a German mathematician and philosopher, in 1694 improved the Pascaline by creating a machine that could also multiply. As its predecessor Leibniz's mechanical multiplier likewise worked by a system of gears and dials. Leibniz also formulated a model that may be considered the theoretical ancestor of some modern computers. In De Arte Combinatoria (1666) Leibniz argued that all reasoning, all discover, verbal or not, is reducible to an ordered combination of elements, such as numbers, words, colors, or sounds.

Further improvements in the field of early computing devices were made by Charles Xavier Thomas de Colmar, a Frenchmen. His arithometer could not only add and multiply, but perform the four basic arithmetic functions and was widely used up until the First World War.

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2000 A.D.

2000
Convergence of telephony, audiovisual technologies and computing

Digital technologies are used to combine previously separated communication and media systems such as telephony, audiovisual technologies and computing to new services and technologies, thus forming extensions of existing communication systems and resulting in fundamentally new communication systems. This is what is meant by today's new buzzwords "multimedia" and "convergence".

Classical dichotomies as the one of computing and telephony and traditional categorizations no longer apply, because these new services no longer fit traditional categories.

Convergence and Regulatory Institutions

Digital technology permits the integration of telecommunications with computing and audiovisual technologies. New services that extend existing communication systems emerge. The convergence of communication and media systems corresponds to a convergence of corporations. Recently, America Online, the world's largest online service provider, merged with Time Warner, the world's largest media corporation. For such corporations the classical approach to regulation - separate institutions regulate separate markets - is no longer appropriate, because the institutions' activities necessarily overlap. The current challenges posed to these institutions are not solely due to the convergence of communication and media systems made possible by digital technologies; they are also due to the liberalization and internationalization of the electronic communications sector. For regulation to be successful, new categorizations and supranational agreements are needed.
For further information on this issue see Natascha Just and Michael Latzer, The European Policy Response to Convergence with Special Consideration of Competition Policy and Market Power Control, http://www.soe.oeaw.ac.at/workpap.htm or http://www.soe.oeaw.ac.at/WP01JustLatzer.doc.

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Virtual cartels, oligopolistic structures

Global networks require global technical standards ensuring the compatibility of systems. Being able to define such standards makes a corporation extremely powerful. And it requires the suspension of competitive practices. Competition is relegated to the symbolic realm. Diversity and pluralism become the victims of the globalisation of baroque sameness.

The ICT market is dominated by incomplete competition aimed at short-term market domination. In a very short time, new ideas can turn into best-selling technologies. Innovation cycles are extremely short. But today's state-of-the-art products are embryonic trash.

    According to the Computer and Communications Industry Association, Microsoft is trying to aggressively take over the network market. This would mean that AT&T would control 70 % of all long distance phone calls and 60 % of cable connections.



    AOL and Yahoo are lone leaders in the provider market. AOL has 21 million subscribers in 100 countries. In a single month, AOL registers 94 million visits. Two thirds of all US internet users visited Yahoo in December 1999.



    The world's 13 biggest internet providers are all American.



    AOL and Microsoft have concluded a strategic cross-promotion deal. In the US, the AOL icon is installed on every Windows desktop. AOL has also concluded a strategic alliance with Coca Cola.


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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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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. Time Warner now for instance operates about 130 Web-Sites (http://www.timewarner.com/corp/about/pubarchive/websites.html). Anyhow the stronger online-engagement of the big media conglomerates by 1998 has led to the establishment of a new pattern: "More than three-quarters of the 31 most visited news and entertainment websites were affiliated with large media firms, and most of the rest were connected to outfits like AOL and Microsoft." (Broadcasting and Cable, 6/22/98).

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:

    As engagement in online activities mostly does not lead to quick profits, investors must be able to take losses, which only powerful companies are able to.



    Traditional media outlets usually have huge stocks of digital programming, which they can easily plug into the Internet at little extra cost.



    To generate audience, the big media conglomerates constantly promote their Websites and other digital media products on their traditional media holdings.



    As possessors of the hottest "brands" commercial media companies often get premier locations from browser software makers, Internet service providers, search engines and portals.



    Having the financial resources at their disposition the big media firms are aggressive investors in start-up Internet media companies.



Commercial media companies have close and long ties to advertisers, which enables them to seize most of these revenues.

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Advertising

Advertising as referred to in most economic books is part of the marketing mix. Therefore advertising usually is closely associated with the aim of selling products and services. Still, developments like "branding" show a tendency towards the marketing of not only products and services, but of ideas and values. While advertising activities are also pursued by political parties, politicians and governmental as well as non-governmental organizations, most of the money flowing into the advertising industry comes from corporations. Although these clients come from such diverse fields, their intentions hardly differ. Attempting to influence the public, their main goal is to sell: Products, services, ideas, values and (political) ideology.

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The 19th Century: Machine-Assisted Manufacturing

Eli Whitney's proposal for a simplification and standardization of component parts marked a further milestone in the advance of the automation of work processes. In 1797 he suggested the manufacture of muskets with completely interchangeable parts. As opposed to the older method under which each gun was the individual product of a highly skilled gunsmith and each part hand-fitted, his method permitted large production runs of parts that were readily fitted to other parts without adjustment and could relatively easy be performed by machines.

By the middle of the 19th century the general concepts of division of labor, assembly of standardized parts and machine-assisted manufacture were well established. On both sides of the Atlantic large factories were in operation, which used specialized machines to improve costs, quality and quantity of their products.

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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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Neighboring rights

Copyright laws generally provide for three kinds of neighboring rights: 1) the rights of performing artists in their performances, 2) the rights of producers of phonograms in their phonograms, and 3) the rights of broadcasting organizations in their radio and television programs. Neighboring rights attempt to protect those who assist intellectual creators to communicate their message and to disseminate their works to the public at large.

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Center for Democracy and Technology

The Center for Democracy and Technology works to promote democratic values and constitutional liberties in the digital age. With expertise in law, technology, and policy, the Center seeks practical solutions to enhance free expression and privacy in global communications technologies. The Center is dedicated to building consensus among all parties interested in the future of the Internet and other new communications media.

http://www.cdt.org

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Blaise Pascal

b. June 19, 1623, Clermont-Ferrand, France
d. August 19, 1662, Paris, France

French mathematician, physicist, religious philosopher, and master of prose. He laid the foundation for the modern theory of probabilities, formulated what came to be known as Pascal's law of pressure, and propagated a religious doctrine that taught the experience of God through the heart rather than through reason. The establishment of his principle of intuitionism had an impact on such later philosophers as Jean-Jacques Rousseau and Henri Bergson and also on the Existentialists.

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Digital Subscriber Line (DSL)

DSL connections are high-speed data connections over copper wire telephone lines. As with cable connections, with DSL you can look up information on the Internet and make a phone call at the same time but you do not need to have a new or additional cable or line installed. One of the most prominent DSL services is ISDN (integrated services digital network, for more information click here ( http://www.britannica.com/bcom/eb/article/4/0,5716,129614+15,00.html )).

http://www.britannica.com/bcom/eb/article/4/0...
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Calculator

Calculators are machines for automatically performing arithmetical operations and certain mathematical functions. Modern calculators are descendants of a digital arithmetic machine devised by Blaise Pascal in 1642. Later in the 17th century, Gottfried Wilhelm von Leibniz created a more advanced machine, and, especially in the late 19th century, inventors produced calculating machines that were smaller and smaller and less and less laborious to use.

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Alexander Graham Bell

b., March 3, 1847, Edinburgh

d. Aug. 2, 1922, Beinn Bhreagh, Cape Breton Island, Nova Scotia, Canada

American audiologist and inventor wrongly remembered for having invented the telephone in 1876. Although Bell introduced the first commercial application of the telephone, in fact a German teacher called Reiss invented it.

For more detailed information see the Encyclopaedia Britannica: http://www.britannica.com/bcom/eb/article/1/0,5716,15411+1+15220,00.html

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PGP

A cryptographic software application that was developed by Phil Zimmerman at the Massachusetts Institute of Technology. Pretty Good Privacy (PGP) is a cryptographic product family that enables people to securely exchange messages, and to secure files, disk volumes and network connections with both privacy and strong authentication.

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Microsoft Corporation

Founded by Bill Gates and Paul Allen and headquartered in Redmond, USA, Microsoft Corporation is today's world-leading developer of personal-computer software systems and applications. As MS-DOS, the first operating system released by Microsoft, before, Windows, its successor, has become the de-facto standard operating system for personal computer. According to critics and following a recent court ruling this is due to unfair competition.

http://www.microsoft.com

For more detailed information see the Encyclopaedia Britannica: http://www.britannica.com/bcom/eb/article/4/0,5716,1524+1+1522,00.html

http://www.microsoft.com/
http://www.britannica.com/bcom/eb/article/4/0...
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Bruce Schneier

Bruce Schneier is president of Counterpane Systems in Minneapolis. This consulting enterprise specialized in cryptography and computer security. He is the author of the book Applied Cryptography and inventor of the Blowfish and Twofish encryption algorithms.

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Kessler Marketing Intelligence (KMI)

KMI is the leading source for information on fiber-optics markets. It offers market research, strategic analysis and product planning services to the opto-electronics and communications industries. KMI tracks the worldwide fiber-optic cable system and sells the findings to the industry. KMI says that every fiber-optics corporation with a need for strategic market planning is a subscriber to their services.

http://www.kmicorp.com/

http://www.kmicorp.com/
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SOA

The U.S.-Army School of Americas (= SOA) is based in Fort Benning (Georgia); it trains Latin American and U.S. soldiers in the working-field of counter-insurgency. Some of the nearly 60.000 SOA-Graduates have been responsible for many of the worst human rights abuses and crimes in Latin America. The list of famous dictators and murderers who went through the education of that institution is tremendous. In 1996 the U.S.-Government that always tried to deny the tasks of SOA, had to admit its work - but never closed it.

For more information see the website of SOA-Watch: http://www.soaw.org

http://www.soaw.org/
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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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