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 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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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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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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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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Assembly line

An assembly line is an industrial arrangement of machines, equipment, and workers for continuous flow of workpieces in mass production operations. An assembly line is designed by determining the sequences of operations for manufacture of each product component as well as the final product. Each movement of material is made as simple and short as possible with no cross flow or backtracking. Work assignments, numbers of machines, and production rates are programmed so that all operations performed along the line are compatible.

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1996 WIPO Copyright Treaty (WCT)

The 1996 WIPO Copyright Treaty, which focused on taking steps to protect copyright "in the digital age" among other provisions 1) makes clear that computer programs are protected as literary works, 2) the contracting parties must protect databases that constitute intellectual creations, 3) affords authors with the new right of making their works "available to the public", 4) gives authors the exclusive right to authorize "any communication to the public of their works, by wire or wireless means ... in such a way that members of the public may access these works from a place and at a time individually chosen by them." and 5) requires the contracting states to protect anti-copying technology and copyright management information that is embedded in any work covered by the treaty. The WCT is available on: http://www.wipo.int/documents/en/diplconf/distrib/94dc.htm



http://www.wipo.int/documents/en/diplconf/dis...
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