Highlights on the Way to a Global Commercial Media Oligopoly: 1990s

-1994

Viacom multimedia and industrial corporation takes control of Paramount Communications for US$ 9.6 billion, as well as Blockbuster Entertainment, a huge video store chain, for US$ 8.4. billion.

1995

Entertainment giant Disney buys Capital Cities-ABC for US$ 19 billion.

The industrial and broadcasting company Westinghouse Corp. buys out CBS for US$ 5.4 billion.

In a US$ 7.2 billion deal, Time Warner acquires Turner Communications, owner of prime cable TV channels CNN, TBS and TNT and a major classic American film library.

1996

Westinghouse/CBS buys Infinity Broadcasting's large group of radio stations.

Murdoch and News Corp. acquire ten more TV stations and TV production studios with the US$ 2.5 billion purchase of New World Communications Group.

Viacom buys half of UPN-TV network, adding that to its other holdings, which include eleven TV stations, along with MTV, VH-1, and other cable TV channels and Paramount movie studios.

1997

Radio Groups Chancellor Media and Evergreen merge and are linked by ownership with Capstar Broadcasting; they also buy ten radio stations from Viacom. By mid-1997 Chancellor/Capstar controls no fewer than 325 radio stations around the United States.

Chancellor/Capstar's controlling ownership group, Hicks Muse Tate & Furst, buys the seventh largest radio group, SFX, adding another seventy-two radio stations, making a total of nearly four hundred stations controlled by this one source.

Westinghouse-CBS buys out American Radio Systems, the fourth largest radio chain in total audience, which gives Westinghouse-CBS over 170 radio stations with a total audience nearly equal to that of the Chancellor/Capstar group.

Giant European-based print and electronic publishing and data base corporations Reed Elsevier and Wolters Kluwer merge.

1998

Bertelsmann buys the Random House-Alfred A. Knopf-Crown Publishing group of book publishers from Newhouse/Advance Publications, adding to its Bantam-Doubleday-Dell publishing group and giving Bertelsmann by far the largest English-language publishing operations.

1999

AOL, the worlds leading Internet service provider and Time Warner, the worlds leading classical media company merge in a US$ 243.3 billion deal.

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Doubls Bind Messages

Double bind messages are extremely effective.
For example in Nicaragua the Sandinistas were seen as the personification of the evil. Demonization was the tool to make the U.S.-population to believe that. And the propaganda, called "Operation Truth", succeeded - and is successful until today. The Sandinistas are still considered an enemy in the head of the people. The media played the role of spreading propaganda - nearly without any criticism.
By the end of the 1980s the USA even paid Nicaraguans for voting other parties than the Sandinistas.

El Salvador was a similar case. Again the guerrilla got demonized. The difference was the involvement of the Catholic Church, which was highly fought against by the ruling parties of El Salvador - and those again were financially and organizationally supported by the USA. The elections in the 1980s were more or less paid by the USA.
U.S.-politicians were afraid El Salvador could end up being a second Cuba or Nicaragua. Every means was correct to fight this tendency, no matter what it cost.
On the 21st of September 1996, the Washington Post published several documents proofing an old rumor: not only that Central American soldiers had been educated in a U.S.-army school (the SOA), they also were taught to use torture as a method against revolutionaries. Some of the Salvadorian "students" of that school became very famous for being extremely cruel, one of them being General Roberto d'Aubuisson (35), the person who ordered the killing of Archbishop Oscar Romero in 1980.

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Governmental Regulations

The new U.S. regulations are based on the Wassenaar Arrangement Revision of 1998, where exports without license of 56 bit DES and similar products are allowed after a technical review, just like encryption commodities and software with key lengths of 64-bits or less which meet the mass market requirements.
For more information see:
http://www.wassenaar.org/

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:
http://www.heise.de/ct/97/04/032/
http://www.fitug.de/ulf/krypto/verbot.html#welt

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 PGP, stay under governmental control.

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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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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Commercial vs. Independent Content: Human and Financial Resources

Concerning their human and financial resources commercial media and independent content provider are an extremely unequal pair. While the 1998 revenues of the world's leading media conglomerates (AOL Time Warner, Disney, Bertelsmann, Viacom and the News Corporation) amounted to US$ 91,144,000,000 provider of independent content usually act on a non-profit basis and to a considerable extent depend on donations and contributions.

Also the human resources they have at their disposal quite differ. Viacom for example employs 112,000 people. Alternative media conversely are mostly run by a small group of activists, most of them volunteers. Moreover the majority of the commercial media giants has a multitude of subsidiaries (Bertelsmann for instance has operations in 53 countries), while independent content provider in some cases do not even have proper office spaces. Asked about their offices number of square meters Frank Guerrero from RTMark comments "We have no square meters at all, because we are only on the web. I guess if you add up all of our servers and computers we would take up about one or two square meters."

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Roberto d'Aubuisson

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

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Fair use

Certain acts normally restricted by copyright may, in circumstances specified in the law, be done without the authorization of the copyright owner. Fair use may therefore be described as the privilege to use copyrighted material in a reasonable manner without the owner's consent and allows the reproduction and use of a work for limited purposes such as criticism, comment, news reporting, teaching, and research. To determine whether a use is fair or not most copyright laws consider: 1) purpose and character of the use, 2) nature of the copyrighted work, 3) amount and substantiality of the portion used, and 4) effect of the use on the potential market. Examples of activities that may be excused as fair use include: providing a quotation in a book review; distributing copies of a section of an article in class for educational purposes; and imitating a work for the purpose of parody or social commentary.

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Bruce Schneier

Bruce Schneier is president of Counterpane Systems in Minneapolis. This consulting enterprise specialized in cryptography and computer security. He is the author of the book Applied Cryptography and inventor of the Blowfish and Twofish encryption algorithms.

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Morwenstow Station

Latitude: 50.9087, Longitude: -4.55264

The GCHQ station in Morwenstow is located near to the British Telecom site at Goonhilly, has 9 dishes pointed at the Atlantic, Europe and the Indian Ocean INTELSATs and is also monitoring regional satellites.

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Edward L. Bernays

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

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Chrysler Corporation

American automotive company first incorporated in 1925 and reorganized and newly incorporated in 1986. It has long been the third largest automaker in the United States (after General Motors and the Ford Motor Company). Founded by Walter P. Chrysler, it took over the business and properties of Maxwell Motor Company, Inc. (first formed in 1913). Today its major subsidiaries include Chrysler Automotive Operations, Inc., which manufactures Plymouth, Dodge, and Chrysler passenger cars, Dodge trucks, and auto parts and accessories; and the Chrysler Financial Corporation. Headquarters are in Highland Park, Mich., U.S.

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