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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Centralization of the Content Industry

Following the 1980s a sweeping restructuring of commercial media power has happened. While some firms have grown through expansion others extended through mergers and acquisitions. Examples are Time & Warner & Turner & AOL; Viacom & Paramount & Blockbusters or News Corp. & Triangle & 20th Century Fox & Metromedia TV.

In recent years those developments have led to the rise of transnational media giants, resulting in the domination of the global media system by about ten huge conglomerates. These have interests in numerous media industries, ranging from film production, magazines, newspapers, book publishing and recorded music to TV and radio channels and networks, but also include retail stores, amusement parks and digital media products.

Behind these firms are about three or four dozen smaller media companies, which primarily engage in local, national or niche markets. In short, the overwhelming majority of the world's content production facilities and distribution channels lies in the hands of approximately fifty enterprises.

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Legal Protection: WIPO (World Intellectual Property Organization)

Presumably the major player in the field of international intellectual property protection and administrator of various multilateral treaties dealing with the legal and administrative aspects of intellectual property is the WIPO.

Information on WIPO administered agreements in the field of industrial property (Paris Convention for the Protection of Industrial Property (1883), Madrid Agreement Concerning the International Registration of Marks (1891) etc.) can be found on: http://www.wipo.org/eng/general/index3.htm

Information on treaties concerning copyright and neighboring rights (Berne Convention for the Protection of Literary and Artistic Works (1886) etc.) is published on: http://www.wipo.org/eng/general/index5.htm

The most recent multilateral agreement on copyright is the 1996 WIPO Copyright Treaty. Among other things it provides that computer programs are protected as literary works and also introduces the protection of databases, which "... by reason of the selection or arrangement of their content constitute intellectual creations." Furthermore the 1996 WIPO Copyright Treaty contains provisions concerning technological measures, rights management information and establishes a new "right of communication to the public". It is available on: http://www.wipo.org/eng/diplconf/distrib/treaty01.htm

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ECHELON Main Stations

Location

Country

Target/Task

Relations

MORWENSTOW

UK

INTELSAT, Atlantic, Europe, Indian Ocean

NSA, GCHQ

SUGAR GROVE

USA

INTELSAT, Atlantic, North and South America

NSA

YAKIMA FIRING CENTER

USA

INTELSAT, Pacific

NSA

WAIHOPAI

NEW ZEALAND

INTELSAT, Pacific

NSA, GCSB

GERALDTON

AUSTRALIA

INTELSAT, Pacific

NSA, DSD

















MENWITH HILL

UK

Sat, Groundstation, Microwave(land based)

NSA, GCHQ

SHOAL BAY

AUSTRALIA

Indonesian Sat

NSA, DSD

LEITRIM

CANADA

Latin American Sat

NSA, CSE

BAD AIBLING

GERMANY

Sat, Groundstation

NSA

MISAWA

JAPAN

Sat

NSA

















PINE GAP

AUSTRALIA

Groundstation

CIA

















FORT MEADE

USA

Dictionary Processing

NSA Headquarters

WASHINGTON

USA

Dictionary Processing

NSA

OTTAWA

CANADA

Dictionary Processing

CSE

CHELTENHAM

UK

Dictionary Processing

GCHQ

CANBERRA

AUSTRALIA

Dictionary Processing

DSD

WELLINGTON

NEW ZEALAND

Dictionary Processing

GCSB Headquarters



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The plastic card invasion

The plastic card invasion.

The tendency of modern data-driven economies is to structure economic activity in such a way that an increasing amount of data is generated. For example, the fact that only a few years ago few people in continental Europe used a credit card, and that now almost everybody who has a bank account also has a credit card, shows that payment by credit card is preferred to anonymous cash transaction. If somebody pays by credit card, there are computers that register the transaction. They record who paid what amount where, and for what purpose. This is valuable information. It allows businesses to "better know their customers". Credit card companies today belong to the largest data repositories anywhere. However, credit card companies have tried to introduce cash cards, or "electronic purses", plastic cards which can be used in lieu of cash in shops - a type of payment, that is not really catching on. In the small town of Ennis, Ireland's "information age town" a field test carried out by Visa, found that people are extremely reluctant to change their cash into bits. "It is just too modern", was the conclusion of an Ennis shopkeeper.

Credit cards may be the most common, but certainly not the only way in which an economic activity produces a data surplus. In the end, the data surplus generated by a credit card is limited to just a few indicators. The tendency of the data body industry is to collect as much data as possible from each single transaction. Therefore, a range of new plastic card applications is emerging.

Most big retailers or service industries, offer customer cards which reward customers with certain discounts or gifts when used frequently. However, the cost of these discounts is easily set off by the value consumer data that is generated each time a card is pulled through the magnetic reading device. Frequent-flyer cards are among the most common plastic data-collecting devices. Often such frequent-flyer cards are also credit cards, in which case travel and consumption data are already combined at the point of sale, creating further rationalisation of the process.

Electronic networks have created a general tendency to move to move marketing decisions to the point of sale, rather than locating them in central locations. This way, the marketing process becomes cheaper and more efficient for the company.

The ideal situation for the data body industry and for government bureaucracy would be a complete centralised storage and management of people's data, and a collection process the pass unnoticed and ensures that the data in question are always current. Many efforts in this direction have been undertaken. One of the most recent such projects is called the smart card. Also referred to as chip cards (because it operates not just with a magnetic stripe but also an computer chip) smart cards are multi-application "intelligent" plastic cards that carry a lot more than the usual information about its holder. For example, a smart card can carry details about right of access to facilities, credit information, social security, and electoral status all in one. Technically there are no limits to the type of information stored on smart cards. In principle it is possible to store an individual's entire data body on a card. Not surprisingly, smart card technologies have been most readily accepted in places with a lack of a privacy protection culture, such as the US, the UK, Spain, and some Latin American Countries.

The Irish town of Ennis, although striving to become "one of the technologically most advanced towns in the world" may have frustrated the expectations of the plastic card industry. Yet this is only a minute, if embarrassing, setback on the path towards global rationalisation of data collection. The economic benefits which the plastic card data collection technologies promises for retailers, E-commerce, marketing and bureaucracies all over the world have given rise to a wealth of research programmes, field tests, projects and government policies, all aimed at promoting the data body economy and adopting it as the business model of the future.

Links to plastic card trade associations:

Card Europe - Association for Smart Card and Related Industries

AIM - Global Trade Association for Automatic Identification and Data Collection

Card Forum

Smart Card Industry Association

Links to plastic card research programmes:

MIT (Massachusetts Institute of Technology)

Ohio University

Pittsburgh University

Cranfield University

Links to publications:

Card Technology Magazine

Links to EU research programmes

ADEPT2

COCLICO

COST219

DISTINCT

SAMPO

SATURN

SOSCARD

Producers

Schlumberger

Gemplus

Bull

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Extranet

An Extranet is an Intranet with limited and controlled access by authenticated outside users, a business-to-business Intranet, e.g.

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Instinet

Instinet, a wholly owned subsidiary of Reuters Group plc since 1987, is the world's largest agency brokerage firm and the industry brokerage leader in after hours trading. It trades in over 40 global markets daily and is a member of seventeen exchanges in North America, Europe, and Asia. Its institutional clients represent more than 90 percent of the institutional equity funds under management in the United States. Instinet accounts for about 20 percent of the NASDAQ daily trading volume and trades approximately 170 million shares of all U.S. equities daily.

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Menwith Hill Station

Menwith Hill Station is one of the biggest groundstations in the UKUSA alliance.It is run by the US National Security Agency (NSA), which monitors the world's communication for US intelligence. Menwith Hill employs 1,200 US civilians and servicemen to work around the clock. It went trough different stages of interception technology. First it was established to intercept radio signals, but now the main focus lays on intercepting and monitoring communication satellites with primary targets Europe, northern Africa and western Asia.

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Division of labor

The term refers to the separation of a work process into a number of tasks, with each task performed by a separate person or group of persons. It is most often applied to mass production systems, where it is one of the basic organizing principles of the assembly line. Breaking down work into simple, repetitive tasks eliminates unnecessary motion and limits the handling of tools and parts. The consequent reduction in production time and the ability to replace craftsmen with lower-paid, unskilled workers result in lower production costs and a less expensive final product. The Scottish economist Adam Smith saw in this splitting of tasks a key to economic progress by providing a cheaper and more efficient means of producing economic goods.

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Microsoft Network

Microsoft Network is the online service from Microsoft Corporation. Although offering direct access to the Internet, mainly proprietary content for entertainment purposes is offered. Best viewed with Microsoft's Internet Explorer.

http://www.msn.com

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Waihopai Station

Waihopai Station on the South Island of New Zealand was established specifically to target the international satellite traffic carried by Intelsat satellites in the Pacific region and its target in the mid-1990s is the Intelsat 701 that came into service in January 1994, and is the primary satellite for the Pacific region.

Source: Nicky Hager, Secret Power, New Zealand's role in the international spy network, (Craig Potton, 1996), Chapter 2

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