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Highlights on the Way to a Global Commercial Media Oligopoly: 1990s -1994 Viacom multimedia and industrial corporation takes control of Paramount Communications for US$ 9.6 billion, as well as Blockbuster Entertainment, a huge video store chain, for US$ 8.4. billion. 1995 Entertainment giant Disney buys Capital Cities-ABC for US$ 19 billion. The industrial and broadcasting company Westinghouse Corp. buys out CBS for US$ 5.4 billion. In a US$ 7.2 billion deal, Time Warner acquires Turner Communications, owner of prime cable TV channels CNN, TBS and TNT and a major classic American film library. 1996 Westinghouse/CBS buys Infinity Broadcasting's large group of radio stations. Murdoch and News Corp. acquire ten more TV stations and TV production studios with the US$ 2.5 billion purchase of New World Communications Group. Viacom buys half of UPN-TV network, adding that to its other holdings, which include eleven TV stations, along with MTV, VH-1, and other cable TV channels and Paramount movie studios. 1997 Radio Groups Chancellor Media and Evergreen merge and are linked by ownership with Capstar Broadcasting; they also buy ten radio stations from Viacom. By mid-1997 Chancellor/Capstar controls no fewer than 325 radio stations around the United States. Chancellor/Capstar's controlling ownership group, Hicks Muse Tate & Furst, buys the seventh largest radio group, SFX, adding another seventy-two radio stations, making a total of nearly four hundred stations controlled by this one source. Westinghouse-CBS buys out American Radio Systems, the fourth largest radio chain in total audience, which gives Westinghouse-CBS over 170 radio stations with a total audience nearly equal to that of the Chancellor/Capstar group. Giant European-based print and electronic publishing and data base corporations Reed Elsevier and Wolters Kluwer merge. 1998 Bertelsmann buys the Random House-Alfred A. Knopf-Crown Publishing group of book publishers from Newhouse/Advance Publications, adding to its Bantam-Doubleday-Dell publishing group and giving Bertelsmann by far the largest English-language publishing operations. 1999 AOL, the worlds leading Internet service provider and Time Warner, the worlds leading classical media company merge in a US$ 243.3 billion deal. |
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Digital Commercial Content Starting in the mid 1990s today most traditional media can also be found online. The overwhelming majority of bigger newspapers and periodicals, but also radio and TV stations now complement their classic media formats with digital programming. For the most part they transform existing analogue information in digital form, with some additional features. Especially the big media conglomerates, having realized the economic potential of the Internet, have started to get into the business of digital content. Not surprisingly their engagement in the virtual sphere has not brought much new concerning their programming. They offer entertainment, music, sports and some news channels. One of the reasons for this development might be, that the big commercial media companies are able to re-use already existing programming from their other ventures. Examples are |
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Extract of Disney’s Content Production and Distribution Holdings Although the traditional media companies first steps into the digital sphere were fairly clumsy, they have quickly learned from their mistakes and continued to enlarge their Internet presence. During the last years many of the smaller players in the field of digital media have been driven out of competition by the huge media conglomerates. This mainly is a result of the advantages that the commercial media giants have over their less powerful counterparts:
Commercial media companies have close and long ties to advertisers, which enables them to seize most of these revenues. |
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Governmental Regulations The new U.S. regulations are based on the Wassenaar Arrangement Revision of 1998, where exports without license of 56 bit For more information see: Seven states stay excluded from the new freedom. These are states like Libya, Iraq, Iran, North Korea and Cuba, altogether states seen as terrorist supporting. No encryption tools may be exported into those countries. This is, what happened in the USA, whereas in Germany the issue of a cryptography-law is still on the agenda. Until now, in Germany, everyone can decide by her-/himself, whether she/he wants to encrypt electronic messages or not. Some organizations fear that this could get changed soon. Therefore an urgent action was organized in February 2000 to demonstrate the government that people want the freedom to decide on their own. One governmental argument is that only very few people actually use cryptography. Therefore the urgent action is organized as a campaign for using it more frequently. For more information on this see: Other European countries have more liberate laws on cryptography, like France. Austria doesn't have any restrictions at all, probably because of a governmental lack of interest more than accepting freedom. The (former) restrictions in the bigger countries influenced and hindered developments for safer key-systems, e.g. the key-length was held down extraordinarily. "Due to the suspicious nature of crypto users I have a feeling DES will be with us forever, we will just keep adding keys and cycles (...). There is a parallel between designing electronic commerce infrastructure today that uses weak cryptography (i.e. 40 or 56 bit keys) and, say, designing air traffic control systems in the '60s using two digit year fields. (...) Just because you can retire before it all blows up doesn't make it any less irresponsible." (Arnold G. Reinhold) The Chinese State Encryption Management Commission (SEMC) announced in March 2000 that only strong encryption tools will have to be registered in the future. Which sounds so nice on first sight, does not mean a lot in reality: any kind of useful encryption technique, like the The restrictions and prohibitions for cryptography are part of the states' wish to acquire more control - in the name of the battle against criminality, probably? Due to the emerging organized criminality the governments want to obtain more freedom of control over citizens. Organizations like the NSA appear as the leaders of such demands. What about civil rights or Human Rights? |
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Satellites Communications satellites are relay stations for radio signals and provide reliable and distance-independent high-speed connections even at remote locations without high-bandwidth infrastructure. On point-to-point transmission, the transmission method originally employed on, satellites face increasing competition from In the future, satellites will become stronger, cheaper and their orbits will be lower; their services might become as common as satellite TV is today. For more information about satellites, see How Satellites Work ( |
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ARPAnet ARPAnet was the small network of individual computers connected by leased lines that marked the beginning of today's global data networks. Being an experimental network mainly serving the purpose to test the feasibility of In 1969 ARPANET went online and links the first two computers, one of them located at the University of California, Los Angeles, the other at the Stanford Research Institute. But ARPAnet has not become widely accepted before it was demonstrated in action to a public of computer experts at the First International Conference on Computers and Communication in Washington, D. C. in 1972. Before it was decommissioned in 1990, In the USA commercial users already outnumbered military and academic users in 1994. Despite the rapid growth of the Net, most computers linked to it are still located in the United States. |
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Assembly line An assembly line is an industrial arrangement of machines, equipment, and workers for continuous flow of workpieces in |
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1996 WIPO Copyright Treaty (WCT) The 1996 |
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America Online Founded in 1985, America Online is the world's biggest Internet service provider serving almost every second user. Additionally, America Online operates CompuServe, the Netscape Netcenter and several AOL.com portals. As the owner of Netscape, Inc. America Online plays also an important role in the Web browser market. In January 2000 America Online merged with Time Warner, the worlds leading media conglomerate, in a US$ 243,3 billion deal, making America Online the senior partner with 55 percent in the new company. |
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