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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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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Doubls Bind Messages

Double bind messages are extremely effective.
For example in Nicaragua the Sandinistas were seen as the personification of the evil. Demonization was the tool to make the U.S.-population to believe that. And the propaganda, called "Operation Truth", succeeded - and is successful until today. The Sandinistas are still considered an enemy in the head of the people. The media played the role of spreading propaganda - nearly without any criticism.
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 Washington Post published several documents proofing an old rumor: not only that Central American soldiers had been educated in a U.S.-army school (the SOA), they also were taught to use torture as a method against revolutionaries. Some of the Salvadorian "students" of that school became very famous for being extremely cruel, one of them being General Roberto d'Aubuisson (35), the person who ordered the killing of Archbishop Oscar Romero in 1980.

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1970s: Computer-Integrated Manufacturing (CIM)

Since the 1970s there had been a growing trend towards the use of computer programs in manufacturing companies. Especially functions related to design and production, but also business functions should be facilitated through the use of computers.

Accordingly the CAD/CAM technology, related to the use of computer systems for design and production, was developed. CAD (computer-aided design) was created to assist in the creation, modification, analysis, and optimization of design. CAM (computer-aided manufacturing) was designed to help with the planning, control, and management of production operations. CAD/CAM technology, since the 1970s, has been applied in many industries, including machined components, electronics products, equipment design and fabrication for chemical processing.

To enable a more comprehensive use of computers in firms the CIM (computer-integrated manufacturing) technology, which also includes applications concerning the business functions of companies, was created. CIM systems can handle order entry, cost accounting, customer billing and employee time records and payroll. The scope of CIM technology includes all activities that are concerned with production. Therefore in many ways CIM represents the highest level of automation in manufacturing.

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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 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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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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1913: Henry Ford and the Assembly Line

Realizing that he'd need to lower costs Henry Ford (Ford Motor Company) was inspired to create a more efficient way to produce his cars. Looking at other industries he and his team found four principles, which furthered their goal: interchangeable parts, continuous flow, division of labor, and reducing wasted effort.

The use of interchangeable parts meant making the individual pieces of the car the same every time. Therefore the machines had to be improved, but once they were adjusted, they could be operated by a low-skilled laborer. To reduce the time workers spent moving around Ford refined the flow of work in the manner that as one task was finished another began, with minimum time spent in set-up. Furthermore he divided the labor by breaking the assembly of the legendary Model T in 84 distinct steps. Frederick Taylor, the creator of "scientific management" was consulted to do time and motion studies to determine the exact speed at which the work should proceed and the exact motions workers should use to accomplish their tasks.

Putting all those findings together in 1913 Ford installed the first moving assembly line that was ever used for large-scale manufacturing. His cars could then be produced at a record-breaking rate, which meant that he could lower the price, but still make a good profit by selling more cars. For the first time work processes were largely automated by machinery.

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Advertising and the Content Industry - The Coca-Cola Case

Attempts to dictate their rules to the media has become a common practice among marketers and the advertising industry. Similar as in the Chrysler case, where the company demanded that magazines give advance notice about controversial articles, recent attempts to put pressure on content providers have been pursued by the Coca-Cola Company.

According to a memo published by the New York Post, Coca-Cola demands a free ad from any publication that publishes a Coke ad adjacent to stories on religion, politics, disease, sex, food, drugs, environmental issues, health, or stories that employ vulgar language. "Inappropriate editorial matter" will result in the publisher being liable for a "full make good," said the memo by Coke advertising agency McCann-Erickson. Asked about this practice, a Coke spokes person said the policy has long been in effect.

(Source: Odwyerpr.com: Coke Dictates nearby Editorial. http://www.odwyerpr.com)

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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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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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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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Henry Ford

b. July 30, 1863, Wayne County, Michigan, U.S.
d. April 7, 1947, Dearborn, Michigan, U.S.

American industrialist who revolutionized factory production with his assembly-line methods. Celebrated as both a technological genius and a folk hero, Ford was the creative force behind an industry of unprecedented size and wealth that in only a few decades permanently changed the economic and social character of the United States. Once Ford realized the tremendous part he and his Model T automobile had played in bringing about this change, he wanted nothing more than to reverse it, or at least to recapture the rural values of his boyhood. Henry Ford, then, is an apt symbol of the transition from an agricultural to an industrial America.

INDEXCARD, 1/19
 
UKUSA

In 1948 the former alliance of USA, UK, Canada, Australia an New Zealand established in World War II was formalized into the UKUSA Signals and Intelligence agreement to aim primarily together against the former USSR, although readers of the agreement say, that it is definitely only signed by the United States and Britain. A number of other countries' SIGINT agencies also participate in the UKUSA community, including those of Germany, Japan, Norway, South Korea, and Turkey. These countries are sometimes described as "Third Party" members of the agreement. In addition, some countries, such as China, host UKUSA SIGINT stations or share SIGINT on a more limited basis.

INDEXCARD, 2/19
 
CIM

To perform manufacturing firm's functions related to design and production the CAD/CAM technology, for computer-aided design and computer-aided manufacturing, was developed. Today it is widely recognized that the scope of computer applications must extend beyond design and production to include the business functions of the firm. The name given to this more comprehensive use of computers is computer-integrated manufacturing (CIM).

INDEXCARD, 3/19
 
Viacom

One of the largest and foremost communications and media conglomerates in the
world. Founded in 1971, the present form of the corporation dates from 1994 when Viacom Inc., which owned radio and television stations and cable television programming services and systems, acquired the entertainment and publishing giant Paramount Communications Inc. and then merged with the video and music retailer Blockbuster Entertainment Corp. Headquarters are in New York City.

INDEXCARD, 4/19
 
Roberto d'Aubuisson

Roberto D'Aubuisson is another Salvadorian graduate of the SOA. In 1980 he organized the assassination of Archbishop Oscar Romero, voice of the poor and marginalized. In 1981 he founded the extreme right wing party ARENA as a weapon against the guerrilla. Between 1978 and 1992 he was the (not so) secret head of the Salvadorian Death Squads. He died of cancer in 1992, but his ideas are still followed by a new group of death squads, which was founded in 1996 (Fuerza Nacionalista Mayor Roberto D'Aubuisson = FURODA).

INDEXCARD, 5/19
 
Expert system

Expert systems are advanced computer programs that mimic the knowledge and reasoning capabilities of an expert in a particular discipline. Their creators strive to clone the expertise of one or several human specialists to develop a tool that can be used by the layman to solve difficult or ambiguous problems. Expert systems differ from conventional computer programs as they combine facts with rules that state relations between the facts to achieve a crude form of reasoning analogous to artificial intelligence. The three main elements of expert systems are: (1) an interface which allows interaction between the system and the user, (2) a database (also called the knowledge base) which consists of axioms and rules, and (3) the inference engine, a computer program that executes the inference-making process. The disadvantage of rule-based expert systems is that they cannot handle unanticipated events, as every condition that may be encountered must be described by a rule. They also remain limited to narrow problem domains such as troubleshooting malfunctioning equipment or medical image interpretation, but still have the advantage of being much lower in costs compared with paying an expert or a team of specialists.

INDEXCARD, 6/19
 
Convergence, 2000-

Digital technologies are used to combine previously separated communication and media systems 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 categorisations no longer apply, because these new services no longer fit traditional categories.

INDEXCARD, 7/19
 
Bulletin Board Systems

A BBS (bulletin board system) is a computer that can be reached by computer modem dialing (you need to know the phone number) or, in some cases, by Telnet for the purpose of sharing or exchanging messages or other files. Some BBSs are devoted to specific interests; others offer a more general service. The definitive BBS List says that there are 40,000 BBSs worldwide.

Bulletin board systems originated and generally operate independently of the Internet.

Source: Whatis.com

INDEXCARD, 8/19
 
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 wide area networks, the possibility of remote computing, it was created for resource sharing between research institutions, not for messaging services like E-mail. Although research was sponsored by US military, ARPAnet was not designed for directly martial use but to support military-related research.

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, NSFnet, a network of scientific and academic computers funded by the National Science Foundation, and a separate new military network went online in 1986. In 1988 the first private Internet service providers offered a general public access to NSFnet. Beginning in 1995, after having become the backbone of the Internet in the USA, NSFnet was turned over to a consortium of commercial backbone providers. This and the launch of the World Wide Web added to the success of the global data network we call the Net.

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.

INDEXCARD, 9/19
 
Time Warner

The largest media and entertainment conglomerate in the world. The corporation resulted from the merger of the publisher Time Inc. and the media conglomerate Warner Communications Inc. in 1989. It acquired the Turner Broadcasting System, Inc. (TBS) in 1996. Time Warner Inc.'s products encompass magazines, hardcover books, comic books, recorded music, motion pictures, and broadcast and cable television programming and distribution. The company's headquarters are in New York City. In January 2000 Time Warner merged with AOL (America Online), which owns several online-services like Compuserve, Netscape and Netcenter in a US$ 243,3 billion deal.

INDEXCARD, 10/19
 
Clipper Chip

The Clipper Chip is a cryptographic device proposed by the U.S. government that purportedly intended to protect private communications while at the same time permitting government agents to obtain the "keys" upon presentation of what has been vaguely characterized as "legal authorization." The "keys" are held by two government "escrow agents" and would enable the government to access the encrypted private communication. While Clipper would be used to encrypt voice transmissions, a similar chip known as Capstone
would be used to encrypt data. The underlying cryptographic algorithm, known as Skipjack, was developed by the National Security Agency (NSA).

INDEXCARD, 11/19
 
GCHQ

GCHQ is the British Government Communication Headquarters, which is in fact an electronic monitoring centre which intercepts communications using spy satellites, listening devices and code-cracking equipment. The 1994 Intelligence Services Act defines GCHQ's role in the post Cold War world. National security, economic well-being and the prevention and detection of serious crime are its headline interests. It routinely gathers information on drug-dealing, terrorism, and the movement of arms and key resources such as oil, but is also said to be heavily involved in ECHELON. GCHG praises itself to use and design high end technology such as Cray systems, Tandem based storage and high-end workstations, as well as software for Signals Analysis, Complex Data Manipulation, Translation and Transcription.

http://www.gchq.gov.uk/

http://www.gchq.gov.uk/
INDEXCARD, 12/19
 
Gateway

A gateway is a computer supplying point-to-multipoint connections between computer networks.

INDEXCARD, 13/19
 
IBM

IBM (International Business Machines Corporation) manufactures and develops cumputer hardware equipment, application and sysem software, and related equipment.

IBM produced the first PC (Personal Computer), and its decision to make Microsoft DOS the standard operating system initiated Microsoft's rise to global dominance in PC software.

Business indicators:

1999 Sales: $ 86,548 (+ 7,2 % from 1998)

Market capitalization: $ 181 bn

Employees: approx. 291,000

Corporate website: www.ibm.com

http://www.ibm.com/
INDEXCARD, 14/19
 
Leonard M. Adleman

Leonard M. Adleman was one of three persons in a team to invent the RSA public-key cryptosystem. The co-authors were Adi Shamir and Ron Rivest.

INDEXCARD, 15/19
 
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.

INDEXCARD, 16/19
 
Edward L. Bernays

Born 1891 in Vienna, Bernays was one of the founders of modern public relations. An enigmatic character, he was a master of mise en scène with far-reaching contacts in the world of business and politics. The nephew of Sigmund Freund and related with Heinrich Heine, he was also among the first to pursue PR for governments and to produce pseudo-events. Bernays considered the manipulation of public opinion as an important element of mass democracies and was of the opinion that only through PR a society's order can be kept.

INDEXCARD, 17/19
 
Archbishop Oscar Arnulfo Romero

Archbishop Oscar Arnulfo Romero († 1980) was elected archbishop because he was very conservative. But when he saw how more and more priests and definitely innocent people were murdered, he changed his attitudes and became one of the sharpest critics of the government. He gave shelter to those in danger, never stopped talking against violence and his Sunday sermons on the radio where moments to tell the truth to the Salvadorians, also mentioning the names of the disappeared or killed persons. As Romero got extremely popular and dangerous for the population he was killed by death squads, while reading a sermon.

INDEXCARD, 18/19
 
Frederick Taylor

b. March 20, 1856, Philadelphia, Pa., U.S.
d. March 21, 1915, Philadelphia

American inventor and engineer who is known as the father of scientific management. His system of industrial management has influenced the development of virtually every country. In 1881, he introduced time study at the Midvale plant. The profession of time study was founded on the success of this project, which also formed the basis of Taylor's subsequent theories of management science. Essentially, Taylor suggested that production efficiency in a shop or factory could be greatly enhanced by close observation of the individual worker and elimination of waste time and motion in his operation. Though the Taylor system provoked resentment and opposition from labor when carried to extremes, its value in rationalizing production was indisputable and its impact on the development of mass production techniques immense.

INDEXCARD, 19/19