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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acceleration

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Internet Content Providers Perspective

As within the traditional media landscape, Internet content providers have two primary means of generating revenue: Direct sales or subscriptions, and advertising. Especially as charging Internet users for access to content - with all the free material available - has proven problematic, advertising is seen as the best solution for creating revenues in the short term. Therefore intense competition has started among Internet content providers and access services to attract advertising money.

Table: Web-Sites Seeking Advertising


Period

Number of Web-Sites

June 1999

2111

July 1999

2174

August 1999

2311

September 1999

2560



Source: Adknowledge eAnalytics. Online Advertising Report

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Product Placement

With television still being very popular, commercial entertainment has transferred the concept of soap operas onto the Web. The first of this new species of "Cybersoaps" was "The Spot", a story about the ups and downs of an American commune. The Spot not only within short time attracted a large audience, but also pioneered in the field of online product placement. Besides Sony banners, the companies logo is also placed on nearly every electronic product appearing in the story. Appearing as a site for light entertainment, The Spots main goal is to make the name Sony and its product range well known within the target audience.

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The Role of the Media

To be able to participate in community life and make political choices citizens heavily rely on information. They need to know what is going on and the options that they should weigh, debate and act upon. An essential element for a functioning public sphere therefore is information.

Whereas formerly communication mostly happened on a face-to-face basis in large and complex societies (mass) media have evolved as the principal source of information. They act as a transport medium for the information necessary for a citizen's participation in the public sphere. Ideally there should be a wide range of media, that represent the diverse opinions and viewpoints on issues of public interest existent in a society and which are independent of the state and society's dominant economic forces.

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Steganography

Ciphers as well as codes are transmitted openly. Everyone can see that they exist. Not so with steganograms.
Steganography is the art and science of communicating in a way which hides the existence of the secret part in that communication. During the Italian Renaissance and the time of the Elizabethan Age in England cryptography was very popular, for political reasons as well as for amusements (see John Dee).
In literature steganography played an important role. Many steganographs of that period have only been deciphered recently like some of the Shakespearean sonnets, which now seem to proof that the actor William Shakespeare was not the author of the famous poems and dramas, but that the latter' name was, and Francis Bacon, or even Francis Tudor, as some ciphers and other sources talk of him as Queen Elisabeth I.'s secret son.

for further details see:
http://home.att.net/~tleary/
http://www.thur.de/ulf/stegano/
http://www2.prestel.co.uk/littleton/gm2_rw.htm

One kind of steganogram is digital watermarking:
Watermarks protect digital images, videos, but also audio and multimedia products. They are made out of digital signals, put into other digital signals. They try to be invisible on first sight and should be nearly impossible to remove. The process of producing watermarks is to overlay some sort of identifying image over the original image (non-digital watermarks, like on money can be seen by holding the paper against light). Copying the image destroys the watermark, which cannot be copied. Any alteration of the original destroys the watermark, too.

Watermarking is one of the typical inventions of cryptography to assist the biggest content owners, but advertised as something necessary and helpful for everybody. Who in fact gets any advantage out of watermarking? The private user most of the time will not really need it except for small entities of pictures maybe.
But the big enterprises do. There is a tendency to watermark more and more information in the Internet, which until now was considered as free and as a cheap method to receive information. Watermarking could stop this democratic development.

for further information see:
http://www.isse.gmu.edu/~njohnson/Steganography

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Another Question of Security

Even with the best techniques it is impossible to invent a cryptographic system that is absolutely safe/unbreakable. To decipher a text means to go through many, sometimes nearly - but never really - endless attempts. For the computers of today it might take hundreds of years or even more to go through all possibilities of codes, but still, finally the code stays breakable. The much faster quantum computers will proof that one day.
Therefore the decision to elect a certain method of enciphering finally is a matter of trust.

For the average user of computers it is rather difficult to understand or even realize the dangers and/or the technological background of electronic transmission of data. For the majority thinking about one's own necessities for encryption first of all means to trust others, the specialists, to rely on the information they provide.
The websites explaining the problems behind (and also the articles and books concerning the topic) are written by experts of course as well, very often in their typical scientific language, merely understandable for laymen. The introductions and other superficial elements of those articles can be understood, whereas the real background appears as untouchable spheres of knowledge.

The fact that dangers are hard to see through and the need for security measures appears as something most people know from media reports, leads directly to the problem of an underdeveloped democracy in the field of cryptography. Obviously the connection between cryptography and democracy is rather invisible for many people. Those mentioned media reports often specialize in talking about the work computer hackers do (sometimes being presented as criminals, sometimes as heroes) and the danger to lose control over the money drawn away from one's bank account, if someone steals the credit card number or other important financial data. The term "security", surely connected to those issues, is a completely different one from the one that is connected to privacy.
It is especially the latter that touches the main elements of democracy.

for the question of security see:
http://www-db.stanford.edu/pub/gio/CS99I/security.html

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Individualized Audience Targeting

New opportunities for online advertisers arise with the possibility of one-to-one Web applications. Software agents for example promise to "register, recognize and manage end-user profiles; create personalized communities on-line; deliver personalized content to end-users and serve highly targeted advertisements". The probably ultimate tool for advertisers. Although not yet widely used, companies like Amazon.Com have already started to exploit individualized audience targeting for their purposes.

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Anonymity

"Freedom of anonymous speech is an essential component of free speech."

Ian Goldberg/David Wagner, TAZ Servers and the Rewebber Network: Enabling Anonymous Publishing on the World Wide Web, in: First Monday 3,4, 1999

Someone wants to hide one's identity, to remain anonymous, if s/he fears to be holding accountable for something, say, a publication, that is considered to be prohibited. Anonymous publishing has a long tradition in European history. Writers of erotic literature or pamphlets, e. g., preferred to use pseudonyms or publish anonymously. During the Enlightenment books as d'Alembert's and Diderot's famous Encyclopaedia were printed and distributed secretly. Today Book Locker, a company selling electronic books, renews this tradition by allowing to post writings anonymously, to publish without the threat of being perishing for it. Sometimes anonymity is a precondition for reporting human rights abuses. For example, investigative journalists and regime critics may rely on anonymity. But we do not have to look that far; even you might need or use anonymity sometimes, say, when you are a woman wanting to avoid sexual harassment in chat rooms.

The original design of the Net, as far as it is preserved, offers a relatively high degree of privacy, because due to the client-server model all what is known about you is a report of the machine from which information was, respectively is requested. But this design of the Net interferes with the wish of corporations to know you, even to know more about you than you want them to know. What is euphemistically called customer relationship management systems means the collection, compilation and analysis of personal information about you by others.

In 1997 America Online member Timothy McVeigh, a Navy employee, made his homosexuality publicly known in a short autobiographical sketch. Another Navy employee reading this sketch informed the Navy. America Online revealed McVeigh's identity to the Navy, who discharged McVeigh. As the consequence of a court ruling on that case, Timothy McVeigh was allowed to return to the Navy. Sometimes anonymity really matters.

On the Net you still have several possibilities to remain anonymous. You may visit web sites via an anonymizing service. You might use a Web mail account (given the personal information given to the web mail service provider is not true) or you might use an anonymous remailing service which strips off the headers of your mail to make it impossible to identify the sender and forward your message. Used in combination with encryption tools and technologies like FreeHaven or Publius anonymous messaging services provide a powerful tool for countering censorship.

In Germany, in 1515, printers had to swear not to print or distribute any publication bypassing the councilmen. Today repressive regimes, such as China and Burma, and democratic governments, such as the France and Great Britain, alike impose or already have imposed laws against anonymous publishing on the Net.

Anonymity might be used for abuses, that is true, but "the burden of proof rests with those who would seek to limit it. (Rob Kling, Ya-ching Lee, Al Teich, Mark S. Frankel, Assessing Anonymous Communication on the Internet: Policy Deliberations, in: The Information Society, 1999).

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Cryptography's Terms and background

"All nature is merely a cipher and a secret writing."
Blaise de Vigenère

In the (dis-)information age getting information but at the same time excluding others from it is part of a power-game (keeping the other uneducated). The reason for it eventually has found an argument called security.
Compared to the frequency of its presence in articles, the news and political speeches security seems to be one of the most popular words of the 90's. It must be a long time ago when that word was only used for and by the military and the police. Today one can find it as part of every political issue. Even development assistance and nutrition programs consider it part of its work.
The so-called but also real need for information security is widespread and concerning everybody, whether someone uses information technology or not. In any case information about individuals is moving globally; mostly sensitive information like about bank records, insurance and medical data, credit card transactions, and much much more. Any kind of personal or business communication, including telephone conversations, fax messages, and of course e-mail is concerned. Not to forget further financial transactions and business information. Almost every aspect of modern life is affected.
We want to communicate with everybody - but do not want anybody to know.

Whereas the market already depends on the electronic flow of information and the digital tools get faster and more sophisticated all the time, the rise of privacy and security concerns have to be stated as well.
With the increase of digital communication its vulnerability is increasing just as fast. And there exist two (or three) elements competing and giving the term digital security a rather drastic bitter taste: this is on the one hand the growing possibility for criminals to use modern technology not only to hide their source and work secretly but also to manipulate financial and other transfers. On the other hand there are the governments of many states telling the population that they need access to any kind of data to keep control against those criminals. And finally there are those people, living between enlightening security gaps and at the same time harming other private people's actions with their work: computer hackers.
While the potential of global information is regarded as endless, it is those elements that reduce it.

There is no definite solution, but at least some tools have been developed to improve the situation: cryptography, the freedom to encode those data that one does not want to be known by everybody, and give a possibility to decode them to those who shall know the data.

During the last 80 years cryptography has changed from a mere political into a private, economic but still political tool: at the same time it was necessary to improve the tools, eventually based on mathematics. Hence generally cryptography is regarded as something very complicated. And in many ways this is true as the modern ways of enciphering are all about mathematics.

"Crypto is not mathematics, but crypto can be highly mathematical, crypto can use mathematics, but good crypto can be done without a great reliance on complex mathematics." (W.T. Shaw)

For an introduction into cryptography and the mathematical tasks see:
http://www.sbox.tu-graz.ac.at/home/j/jonny/projects/crypto/index.htm
http://www.ccc.de/CCC-CA/policy.html

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FREEnet (The Network for Research, Education and Engineering)

FREEnet is an academic and research network, interconnecting computer networks of research institutes of the Russian Academy of Sciences, universities, colleges, and other research and academic institutions. It was established in 1991 by the N.D. Zelinsky Institute of Organic Chemistry at the Center of Computer Assistance to Chemical Research. It provides its more than 350 members of the academic and educational community with all types of basic Internet services and various information services.

Strategies and Policies

FREEnets general intention is to become a backbone infrastructure providing:

Open networking services for efficient access to the network and information resources located both in Russia and all over the Internet.

Reliable network connectivity for research, academic and educational communities in Russia and abroad.

Worldwide access to science and information resources of the Russian Academy of Sciences, universities and colleges in Russia.

Assistance to the progress of Russian based fundamental research.

Assistance to the development and application of modern information technologies in education.

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Commercial vs. Independent Content

Commercial media aim towards economies of scale and scope, with the goal to maximize profits. As advertising money usually is their primary source of revenue their content very often is attuned to meet the needs of advertisers and marketers. Information necessary for a citizen's participation in the public sphere usually only plays a minor role in their programming, as it does not comply with the demands of an economic system whose principal aim is the generation of profit. They also virtually always are structured in accord with and to help reinforce society's defining hierarchical social relationships, and are generally controlled by and controlling of other major social institutions, particularly corporations.

Independent content provider on the other hand mostly act on a non-profit basis and try to avoid dependence on corporate powers and the state. One of their main concerns is the critical observation of public interest issues. The central aim of independent content provider's activities usually is to bring aspects and standpoints neglected by the (commercial) mainstream media to the public and subvert society's defining hierarchical social relationships. Promoting public debate and an active civil society they engage in the organization of alert actions and information campaigns or create subversive art

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Beautiful bodies

However, artificial beings need not be invisible or look like Arnold Schwarzenegger in "Terminator". "My dream would be to create an artificial man that does not look like a robot but like a beautiful, graceful human being. The artificial man should be beautiful". Nadia Thalman's hopes for beautiful robots may become reality in the work of MIRALab, a research laboratory attached to the University of Geneva dedicated to realistic modelling of human functionalities. The laboratory has produced an artificial Marylyn Monroe showing just how beautiful artificial creatures can be, and there is a biography featuring details of her career and her - however virtual - love life. Yet beautiful creatures have been made before, at leas on the movie screen. Frank-N-furter, the protagonist of the Rocky Horror picture show ("I've been making a man / with blond hair and a tan / and he is good for relieving my /tension) did set remakrable esthetic standards.

While in Hindu mythology, avatars are bodies chosen by gods for their representation on earth, often animals such as swans or horses, the avatars populating cyberspace have a different function. The cyber bodies of real people, often 3 dimensional images of creatures whose aesthetics reflects both the tastes prevalent in the entertainment and advertising industries as the state of art in visual representation.

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Missing Labeling of Online Ads

One of the most crucial issues in on-line advertising is the blurring of the line between editorial content and ads. Unlike on TV and in the print media, where guidelines on the labeling of advertisements, which shall enable the customer to distinguish between editorial and ads, exist, similar conventions have not yet evolved for Internet content. Labeling of online advertisement up to now has remained the rare exception, with only few sites (e.g. http://www.orf.at) explicitly indicating non-editorial content.

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The Advertising Industry

The advertising industry is dominated by three huge advertising networks, which offer their services throughout the world. Gross income of the three leading agencies is twice as much, as the one of places four to ten.

Table: World's Top 10 Advertising Organizations 1999

(figures in millions of U.S. dollars)

Rank 1999

Advertising Organization

Headquarters

World-Wide Gross Income 1999

1

Omnicom

New York, USA

$ 5,743.4

2

Interpublic Group of Cos.

New York, USA

$ 5,079.3

3

WPP Group

London, UK

$ 4,819.3

4

Havas Advertising

Levallois-Perret, France

$ 2,385.1

5

Dentsu

Tokyo, Japan

$ 2,106.8

6

B Com3 Group

Chicago, USA

$ 1,933.8

7

Young & Rubicam Inc.

New York, USA

$ 1,870.1

8

Grey Advertising

New York, USA

$ 1,577.9

9

True North

Chicago, USA

$ 1,489.2

10

Publicis SA

Paris, France

$ 1,434.6



Table: Top 10 Global Marketers 1998

(figures in millions of U.S. dollars)

Rank 1998

Advertiser

Headquarters

World-Wide Media Spending 1998

1

Procter & Gamble Co.

Cincinnati (US)

$ 4,747.6

2

Unilever

Rotterdam (NL)/London (UK)

$ 3,428.5

3

General Motors Corp.

Detroit (US)

$ 3,193.5

4

Ford Motor Co.

Darborn (US)

$ 2,229.5

5

Philip Morris Cos.

New York

$ 1,980.3

6

Daimler Chrysler

Stuttgart (GER)/Auburn Hills (US

$ 1,922.2

7

Nestle

Vevey (SUI)

$ 1,833.0

8

Toyota Motor Corp.

Toyota City (JP)

$ 1,692.4

9

Sony Corp.

Tokyo (JP)

$ 1,337.7

10

Coca-Cola Co.

Atlanta (US)

$ 1,327.3



On the other hand the three biggest advertisers only spend about US$ 2 millions less than places four to ten together. Whereas money spent on advertising in traditional media comes from very diverse categories, companies offering computer hard- and software, peripherals or Internet services mainly pay for on-line advertisements.

Table: Top 10 Internet Advertisers 1998

(figures in millions of U.S. dollars)

Rank 1998

Advertiser

Internet Spending 1998

1998 - 1997 % Change

1

Microsoft Corp.

$ 34.9

9.4

2

IBM Corp.

$ 28.5

58.6

3

Compaq Computer Corp.

$ 16.2

169.8

4

General Motors Corp.

$ 12.7

84.8

5

Excite

$ 12.4

1.5

6

Infoseek Corp.

$ 9.3

22.3

7

AT&T Corp.

$ 9.3

43.5

8

Ford Motor Co.

$ 8.6

46.7

9

Hewlett-Packard Co.

$ 8.1

102.9

10

Barnes & Noble

$ 7.6

280.2



Source: Advertising Age

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Timeline 1900-1970 AD

1913 the wheel cipher gets re-invented as a strip

1917 William Frederick Friedman starts working as a cryptoanalyst at Riverbank Laboratories, which also works for the U.S. Government. Later he creates a school for military cryptoanalysis

- an AT&T-employee, Gilbert S. Vernam, invents a polyalphabetic cipher machine that works with random-keys

1918 the Germans start using the ADFGVX-system, that later gets later by the French Georges Painvin

- Arthur Scherbius patents a ciphering machine and tries to sell it to the German Military, but is rejected

1919 Hugo Alexander Koch invents a rotor cipher machine

1921 the Hebern Electric Code, a company producing electro-mechanical cipher machines, is founded

1923 Arthur Scherbius founds an enterprise to construct and finally sell his Enigma machine for the German Military

late 1920's/30's more and more it is criminals who use cryptology for their purposes (e.g. for smuggling). Elizabeth Smith Friedman deciphers the codes of rum-smugglers during prohibition regularly

1929 Lester S. Hill publishes his book Cryptography in an Algebraic Alphabet, which contains enciphered parts

1933-1945 the Germans make the Enigma machine its cryptographic main-tool, which is broken by the Poles Marian Rejewski, Gordon Welchman and Alan Turing's team at Bletchley Park in England in 1939

1937 the Japanese invent their so called Purple machine with the help of Herbert O. Yardley. The machine works with telephone stepping relays. It is broken by a team of William Frederick Friedman. As the Japanese were unable to break the US codes, they imagined their own codes to be unbreakable as well - and were not careful enough.

1930's the Sigaba machine is invented in the USA, either by W.F. Friedman or his colleague Frank Rowlett

- at the same time the British develop the Typex machine, similar to the German Enigma machine

1943 Colossus, a code breaking computer is put into action at Bletchley Park

1943-1980 the cryptographic Venona Project, done by the NSA, is taking place for a longer period than any other program of that type

1948 Shannon, one of the first modern cryptographers bringing mathematics into cryptography, publishes his book A Communications Theory of Secrecy Systems

1960's the Communications-Electronics Security Group (= CESG) is founded as a section of Government Communications Headquarters (= GCHQ)

late 1960's the IBM Watson Research Lab develops the Lucifer cipher

1969 James Ellis develops a system of separate public-keys and private-keys

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c2o (Community Communications Online)

c2o, founded in 1997, provides consultancy, training and web hosting services to community-based organizations in the Australasian region. c2o's focus lies on addressing the issues and needs that have arisen from the transition from connectivity to information management.

Strategies and Policies

Content and Delivery: c2o focuses on the development and maintenance of content delivery services that assist in the publication and dissemination of information, particularly that of community interest including environment, social development, human rights and social justice.

Publishing Support: c2o designs online publishing systems that provide a means for user maintenance and tools that enhance an organizations existing information systems. c2o seeks seamless integration and user empowerment.

Asia-Pacific Networking: c2o supports networking initiatives throughout Australia and the Asia Pacific region. It promotes and encourages public and equitable access to networking technologies.

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The Concept of the Public Sphere

According to social critic and philosopher Jürgen Habermas "public sphere" first of all means "... a domain of our social life in which such a thing as public opinion can be formed. Access to the public sphere is open in principle to all citizens. A portion of the public sphere is constituted in every conversation in which private persons come together to form a public. They are then acting neither as business or professional people conducting their private affairs, nor as legal consociates subject to the legal regulations of a state bureaucracy and obligated to obedience. Citizens act as a public when they deal with matters of general interest without being subject to coercion; thus with the guarantee that they may assemble and unite freely, and express and publicize their opinions freely."

The system of the public sphere is extremely complex, consisting of spatial and communicational publics of different sizes, which can overlap, exclude and cover, but also mutually influence each other. Public sphere is not something that just happens, but also produced through social norms and rules, and channeled via the construction of spaces and the media. In the ideal situation the public sphere is transparent and accessible for all citizens, issues and opinions. For democratic societies the public sphere constitutes an extremely important element within the process of public opinion formation.

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Definition

During the last 20 years the old Immanuel Wallerstein-paradigm of center - periphery and semi-periphery found a new costume: ICTs. After Colonialism, Neo-Colonialism and Neoliberalism a new method of marginalization is emerging: the digital divide.

"Digital divide" describes the fact that the world can be divided into people who
do and people who do not have access to (or the education to handle with) modern information technologies, e.g. cellular telephone, television, Internet. This digital divide is concerning people all over the world, but as usually most of all people in the formerly so called third world countries and in rural areas suffer; the poor and less-educated suffer from that divide.
More than 80% of all computers with access to the Internet are situated in larger cities.

"The cost of the information today consists not so much of the creation of content, which should be the real value, but of the storage and efficient delivery of information, that is in essence the cost of paper, printing, transporting, warehousing and other physical distribution means, plus the cost of the personnel manpower needed to run these `extra' services ....Realizing an autonomous distributed networked society, which is the real essence of the Internet, will be the most critical issue for the success of the information and communication revolution of the coming century of millennium."
(Izumi Aizi)

for more information see:
http://www.whatis.com/digital_divide.htm

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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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John Dee

b. July 13, 1527, London, England
d. December 1608, Mortlake, Surrey

English alchemist, astrologer, and mathematician who contributed greatly to the revival of interest in mathematics in England. After lecturing and studying on the European continent between 1547 and 1550, Dee returned to England in 1551 and was granted a pension by the government. He became astrologer to the queen, Mary Tudor, and shortly thereafter was imprisoned for being a magician but was released in 1555. Dee later toured Poland and Bohemia (1583-89), giving exhibitions of magic at the courts of various princes. He became warden of Manchester College in 1595.

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Richard Barbrook and Andy Cameron, The Californian Ideology

According to Barbrook and Cameron there is an emerging global orthodoxy concerning the relation between society, technology and politics. In this paper they are calling this orthodoxy the Californian Ideology in honor of the state where it originated. By naturalizing and giving a technological proof to a political philosophy, and therefore foreclosing on alternative futures, the Californian ideologues are able to assert that social and political debates about the future have now become meaningless and - horror of horrors - unfashionable. - This paper argues for an interactive future.

http://www.wmin.ac.uk/media/HRC/ci/calif.html

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Aeneas Tacticus

Supposedly his real name was Aeneas of Stymphalus. He was a Greek military scientist and cryptographer. He invented an optical system for communication similar to a telegraph: the water-clocks.

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Polybius

Polybius was one of the greatest historians of the ancient Greek. he lived from 200-118 BC. see: Polybius Checkerboard.

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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 fiber optic cables, so point-to-multipoint transmission increasingly becomes the ruling satellite technology. Point-to-multipoint transmission enables the quick implementation of private networks consisting of very small aperture terminals (VSAT). Such networks are independent and make mobile access possible.

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 (http://octopus.gma.org/surfing/satellites) and the Tech Museum's satellite site (http://www.thetech.org/hyper/satellite).

http://www.whatis.com/vsat.htm
http://octopus.gma.org/surfing/satellites
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Newsgroups

Newsgroups are on-line discussion groups on the Usenet. Over 20,000 newsgroups exist, organized by subject into hierarchies. Each subject hierarchy is further broken down into subcategories. Covering an incredible wide area of interests and used intensively every day, they are an important part of the Internet.

For more information, click here ( http://www.terena.nl/libr/gnrt/group/usenet.html ).

http://www.terena.nl/libr/gnrt/group/usenet.h...
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atbash

Atbash is regarded as the simplest way of encryption. It is nothing else than a reverse-alphabet. a=z, b= y, c=x and so on. Many different nations used it in the early times of writing.

for further explanations see:
http://www.ftech.net/~monark/crypto/crypt/atbash.htm

http://www.ftech.net/~monark/crypto/crypt/atb...
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to decipher/decode

to put the ciphers/codes back into the plaintext

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codes

an algorithm for bringing a legible message into an illegible form. There has to exist some sort of code book to encode/decode it.

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Industrial design

Industrial design refers to the ornamental aspect of a useful article which may constitute of two or three-dimensional elements. To be qualified for intellectual property protection the design must be novel or original. Protection can be obtained through registration in a government office and usually is given for 10 to 15 years.

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plaintext

the original, legible text

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Censorship of Online Content in China

During the Tian-an men massacre reports and photos transmitted by fax machines gave notice of what was happening only with a short delay. The Chinese government has learned his lesson well and "regulated" Internet access from the beginning. All Internet traffic to and out of China passes through a few gateways, a few entry-points, thus making censorship a relatively easy task. Screened out are web sites of organizations and media which express dissident viewpoints: Taiwan's Democratic Progress Party and Independence Party, The New York Times, CNN, and sites dealing with Tibetan independence and human rights issues.

Users are expected not to "harm" China's national interests and therefore have to apply for permission of Internet access; Web pages have to be approved before being published on the Net. For the development of measures to monitor and control Chinese content providers, China's state police has joined forces with the MIT.

For further information on Internet censorship, see Human Rights Watch, World Report 1999.

http://www.dpp.org/
http://www.nytimes.com/
http://www.hrw.org/worldreport99/special/inte...
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Telnet

Telnet allows you to login remotely on a computer connected to the Internet.

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Enochian alphabet

Also "Angelic" language. Archaic language alphabet composed of 21 letters, discovered by John Dee and his partner Edward Kelley. It has its own grammar and syntax, but only a small sample of it has ever been translated to English.

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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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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

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Telephone

The telephone was not invented by Alexander Graham Bell, as is widely held to be true, but by Philipp Reiss, a German teacher. When he demonstrated his invention to important German professors in 1861, it was not enthusiastically greeted. Because of this dismissal, no financial support for further development was provided to him.

And here Bell comes in: In 1876 he successfully filed a patent for the telephone. Soon afterwards he established the first telephone company.

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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.

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Local Area Network (LAN)

A Local Area Network is an office network, a network restricted to a building area.

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National Science Foundation (NSF)

Established in 1950, the National Science Foundation is an independent agency of the U.S. government dedicated to the funding in basic research and education in a wide range of sciences and in mathematics and engineering. Today, the NSF supplies about one quarter of total federal support of basic scientific research at academic institutions.

http://www.nsf.gov

For more detailed information see the Encyclopaedia Britannica: http://www.britannica.com/bcom/eb/article/0/0,5716,2450+1+2440,00.html

http://www.nsf.gov/
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World Wide Web (WWW)

Probably the most significant Internet service, the World Wide Web is not the essence of the Internet, but a subset of it. It is constituted by documents that are linked together in a way you can switch from one document to another by simply clicking on the link connecting these documents. This is made possible by the Hypertext Mark-up Language (HTML), the authoring language used in creating World Wide Web-based documents. These so-called hypertexts can combine text documents, graphics, videos, sounds, and Java applets, so making multimedia content possible.

Especially on the World Wide Web, documents are often retrieved by entering keywords into so-called search engines, sets of programs that fetch documents from as many servers as possible and index the stored information. (For regularly updated lists of the 100 most popular words that people are entering into search engines, click here). No search engine can retrieve all information on the whole World Wide Web; every search engine covers just a small part of it.

Among other things that is the reason why the World Wide Web is not simply a very huge database, as is sometimes said, because it lacks consistency. There is virtually almost infinite storage capacity on the Internet, that is true, a capacity, which might become an almost everlasting too, a prospect, which is sometimes consoling, but threatening too.

According to the Internet domain survey of the Internet Software Consortium the number of Internet host computers is growing rapidly. In October 1969 the first two computers were connected; this number grows to 376.000 in January 1991 and 72,398.092 in January 2000.

World Wide Web History Project, http://www.webhistory.org/home.html

http://www.searchwords.com/
http://www.islandnet.com/deathnet/
http://www.salonmagazine.com/21st/feature/199...
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Virtual Marylin Monroe

This is the story of the virtual Marylyn Monroe created by MRALab in Switzerland. The biography features her personal and professional stories. This being the biography of a virtual being, it does not end with the present and includes, instead, a chapter on her destiny.

http://www.miralab.unige.ch/MARILYN/VIRTUAL/virtual.html

http://www.miralab.unige.ch/MARILYN/VIRTUAL/v...
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Gaius Julius Caesar

Gaius Julius Caesar (100-44 BC) was a Roman Statesman who came to power through a military career and by buying of votes. His army won the civil war, run over Spain, Sicily and Egypt, where he made Cleopatra a Queen. For reaching even more power he increased the number of senators. But he also organized social measures to improve the people's food-situation. In February 44 BC he did not accept the kingship offered by Marc Anthony, which made him even more popular. One month later he was murdered during a senate sitting.

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The Spot

http://www.thespot.com/

http://www.thespot.com/
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Artificial Intelligence

Artificial Intelligence is concerned with the simulation of human thinking and emotions in information technology. AI develops "intelligent systems" capable, for example, of learning and logical deduction. AI systems are used for creatively handling large amounts of data (as in data mining), as well as in natural speech processing and image recognition. AI is also used as to support decision taking in highly complex environments.
Yahoo AI sites: http://dir.yahoo.com/Science/Computer_Science/Artificial_Intelligence/
MIT AI lab: http://www.ai.mit.edu/


http://dir.yahoo.com/Science/Computer_Science...
http://www.ai.mit.edu/
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The Flesh Machine

This is the tile of a book by the Critical Art Ensemble which puts the development of artifical life into a critical historical and political context, defining the power vectors which act as the driving force behind this development. The book is available in a print version (New York, Autonomedia 1998) and in an online version at http://www.critical-art.net/fles/book/index.html

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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 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.

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CNN

CNN is a U.S.-TV-enterprise, probably the world's most famous one. Its name has become the symbol for the mass-media, but also the symbol of a power that can decide which news are important for the world and which are not worth talking about. Every message that is published on CNN goes around the world. The Gulf War has been the best example for this until now, when a CNN-reporter was the one person to do the countdown to a war. The moments when he stood on the roof of a hotel in Baghdad and green flashes surrounded him, went around the world.

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Barnes and Noble

Massive online retail bookstore housing more than a million titles. Includes a book recommendation "personalizer,", a comprehensive list of The New York Times bestsellers, a "live" community events calendar with a daily survey and several forums, "highlighted" books from 19 subject areas, browsable categories such as antiques, ethnic studies, and pop culture, Books in the News, and weekly features such as reviews, excerpts, recommendations, interviews, events, "roundups" of popular titles, and quizzes.

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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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ciphertext

the enciphered/encoded and primarily illegible text

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to encipher/encode

to put a word or text into ciphers/codes

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Wide Application Protocol (WAP)

The WAP (Wireless Application Protocol) is a specification for a set of communication protocols to standardize the way that wireless devices, such as cellular telephones and radio transceivers, can be used for Internet access, including e-mail, the World Wide Web, newsgroups, and Internet Relay Chat (IRC).

While Internet access has been possible in the past, different manufacturers have used different technologies. In the future, devices and service systems that use WAP will be able to interoperate.

Source: Whatis.com

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Gateway

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

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Invention

According to the WIPO an invention is a "... novel idea which permits in practice the solution of a specific problem in the field of technology." Concerning its protection by law the idea "... must be new in the sense that is has not already been published or publicly used; it must be non-obvious in the sense that it would not have occurred to any specialist in the particular industrial field, had such a specialist been asked to find a solution to the particular problem; and it must be capable of industrial application in the sense that it can be industrially manufactured or used." Protection can be obtained through a patent (granted by a government office) and typically is limited to 20 years.

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Polybius Checkerboard


 

1

2

3

4

5

1

A

B

C

D

E

2

F

G

H

I

K

3

L

M

N

O

P

4

Q

R

S

T

U

5

V

W

X

Y

Z



It is a system, where letters get converted into numeric characters.
The numbers were not written down and sent but signaled with torches.

for example:
A=1-1
B=1-2
C=1-3
W=5-2

for more information see:
http://www.ftech.net/~monark/crypto/crypt/polybius.htm

http://www.ftech.net/~monark/crypto/crypt/pol...
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