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New Media ( Chapter 8 in New Media ( Chapter 8 in Text)Text)

Definition & the Information RevolutionDefinition & the Information Revolution Changing economicsChanging economics Changing regulationChanging regulation Social IssuesSocial Issues Social Challenges:Social Challenges:

The Knowledge GapThe Knowledge Gap Surveillance and loss of privacySurveillance and loss of privacy Sharing and Market “Hacktivism”Sharing and Market “Hacktivism”

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History of New MediaHistory of New Media

Since 1970s, but especially 1990s, nations concerned with the “ Since 1970s, but especially 1990s, nations concerned with the “ information highway”information highway”

Treated the Internet like an 1840s challenge of the telegraphTreated the Internet like an 1840s challenge of the telegraph Concern that to remain competitive in a global trading economy, Concern that to remain competitive in a global trading economy,

nations needed to “wire up”nations needed to “wire up” Provide businesses, workers and consumers access to the Provide businesses, workers and consumers access to the

Internet for education, retail, entertainmentInternet for education, retail, entertainment Frontier metaphors often usedFrontier metaphors often used Essential for economic transformation away from industrial to service/ Essential for economic transformation away from industrial to service/

information economies: the so-called “innovation agenda”information economies: the so-called “innovation agenda” In Canada, wired telco/cable providers dominated agenda: wireless In Canada, wired telco/cable providers dominated agenda: wireless

only now emergingonly now emerging

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Building the InternetBuilding the Internet

Nations regulate telecommunications internationally: Nations regulate telecommunications internationally: agree on bandwidth of electronic transmission, spacing agree on bandwidth of electronic transmission, spacing of satellites, sharing of costs/ interconnectionof satellites, sharing of costs/ interconnection

Also develop technical standards for interconnection Also develop technical standards for interconnection ( IP protocols such as MP3)( IP protocols such as MP3)

This is the international standards role of nations, This is the international standards role of nations, businesses and technical experts in creating a market businesses and technical experts in creating a market for technology, and ensuring consumers don’t buy for technology, and ensuring consumers don’t buy technology which will not worktechnology which will not work

Business play a bigger and bigger role influencing this Business play a bigger and bigger role influencing this shadow world of standards: citizens underrepresentedshadow world of standards: citizens underrepresented

But: companies still need states to rule on standardsBut: companies still need states to rule on standards

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Definition of New MediaDefinition of New Media

Digital communicationDigital communication Used in the production, distribution and Used in the production, distribution and

reception of communicationreception of communication Involves use of new communication Involves use of new communication

networks: Internet as mass mediumnetworks: Internet as mass medium

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Information RevolutionInformation Revolution

Digitization: using computers to Digitization: using computers to store,manipulate and transmit information in store,manipulate and transmit information in form of speech, text, data, and video more form of speech, text, data, and video more cheaply and faster than every before.cheaply and faster than every before.

Networking: distributed, fast digital networks Networking: distributed, fast digital networks wired and wirelesswired and wireless

Convergence: refers to merging of what were Convergence: refers to merging of what were three separate industries: telecommunications, three separate industries: telecommunications, computing, and electronics or broadcastingcomputing, and electronics or broadcasting

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Characteristics of New Characteristics of New MediaMedia

ConvergenceConvergence of telecommunications of telecommunications and entertainment/broadcast media and entertainment/broadcast media industriesindustries

Wire or wirelessWire or wireless communication communication Point to point or addressablePoint to point or addressable Interactive ( two way) ( now multiple Interactive ( two way) ( now multiple

conferencing)conferencing)

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Characteristics ContinuedCharacteristics Continued

Interpersonal:Interpersonal: ie. The terrain of telephony treats ie. The terrain of telephony treats telephone calls ( discretionary contact between two telephone calls ( discretionary contact between two consenting persons) as consenting persons) as PRIVATE not PUBLICPRIVATE not PUBLIC communication ( where telco distributors are not communication ( where telco distributors are not responsible for content of message)responsible for content of message)

Multiple:Multiple: can be Mass/Broadcast which is PUBLIC can be Mass/Broadcast which is PUBLIC communication ( broadcasters are responsible for communication ( broadcasters are responsible for message in exchange for spectrum monopoly: message in exchange for spectrum monopoly: hybrid hybrid charactercharacter))

Now a grey area of semi public/private communication Now a grey area of semi public/private communication ( can monitor cell phones, amass, monitor and store ( can monitor cell phones, amass, monitor and store unprecedented personal communication)unprecedented personal communication)

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Digital CommunicationDigital Communication

Where image text or sound is converted into binary Where image text or sound is converted into binary numbers- ones and zeroes ( 0/1)numbers- ones and zeroes ( 0/1)

Digital codes can duplicate, track store or play back Digital codes can duplicate, track store or play back complex kinds of contentcomplex kinds of content

Strong when combined with ever greater chip capacity Strong when combined with ever greater chip capacity in computers, and bundles of glass fibre ( fibre optics) in computers, and bundles of glass fibre ( fibre optics) capable of carrying large quantities of informationcapable of carrying large quantities of information

Current “revolution”: the Digital Video DiskCurrent “revolution”: the Digital Video Disk DVDs: higher resolution, no rewinding,now coming DVDs: higher resolution, no rewinding,now coming

recordable for storage and intending to replace CDSrecordable for storage and intending to replace CDS Also: wireless Internet ( games on the cell phone)Also: wireless Internet ( games on the cell phone)

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Implication of DigitizationImplication of Digitization

Drive to animation and special effectsDrive to animation and special effects Actors worried about cyber simulators Actors worried about cyber simulators

replacing themreplacing them Domination of nature: totally simulated Domination of nature: totally simulated

worlds?worlds? Question of authenticity of image Question of authenticity of image

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The Role of the Media in the The Role of the Media in the Age of Digital ReproductionAge of Digital Reproduction

Walter Benjamin, a noted cultural scholar, suggests that the infinite Walter Benjamin, a noted cultural scholar, suggests that the infinite reproducibility of the communication product ( CD, video, internet) due to reproducibility of the communication product ( CD, video, internet) due to its low marginal cost of duplication changes the nature of the work of artits low marginal cost of duplication changes the nature of the work of art

But western capitalism has conceived of the realm of ideas and But western capitalism has conceived of the realm of ideas and expression as proprietaryexpression as proprietary Books, stories or photos may be copyrighted so they ‘belong’ to the author Books, stories or photos may be copyrighted so they ‘belong’ to the author

and no one may borrow or copy them without permission, attribution or and no one may borrow or copy them without permission, attribution or paymentpayment

The high risk nature of entertainment ( so called hit rule) calls for The high risk nature of entertainment ( so called hit rule) calls for imitation or ‘clones’ in popular culture ( riding the next so called fad or imitation or ‘clones’ in popular culture ( riding the next so called fad or wave)wave)

Infinite reproducibility, repackaging,repurposing and presenting Infinite reproducibility, repackaging,repurposing and presenting information as originalinformation as original

There are many pressures on ‘news’ or ‘entertainment’ manufacture for There are many pressures on ‘news’ or ‘entertainment’ manufacture for cutting corners on production: ethical standards to prevent recycling cutting corners on production: ethical standards to prevent recycling content and presenting it as original are weak– digital watermarking is a content and presenting it as original are weak– digital watermarking is a weak barrierweak barrier

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Technical Potentials of Technical Potentials of the New Mediathe New Media

Costs of production dropping: makes Costs of production dropping: makes media creation more accessible ( digital media creation more accessible ( digital camera and access to the net)camera and access to the net)

Costs of distribution downCosts of distribution down Interactive// less hierarchicalInteractive// less hierarchical Faster…more globalFaster…more global

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The InternetThe Internet

What: a vast network of high speed wires and What: a vast network of high speed wires and satellite relays linking computers worldwidesatellite relays linking computers worldwide

No central hub: thousands of computer nodes ( No central hub: thousands of computer nodes ( it is highly distributed)it is highly distributed)

Uses a type of switching that is hard to trace: Uses a type of switching that is hard to trace: designed after WW2 in the RAND corporation designed after WW2 in the RAND corporation to avoid worldwide military attackto avoid worldwide military attack Now used for: email, commerce, chat lines,file Now used for: email, commerce, chat lines,file

sharing etc.sharing etc. Sometimes synonmous with on line worldSometimes synonmous with on line world

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Components of the Components of the InternetInternet

World Wide WebWorld Wide Web Internet Service Providers (AOL Time Internet Service Providers (AOL Time

Warner; Sympatico,Telus, Shaw@Home, Warner; Sympatico,Telus, Shaw@Home, AT&T)AT&T)

Portals ( MSN)Portals ( MSN) Browsers: Explorer, NetscapeBrowsers: Explorer, Netscape Search Engines and directories ( Google, Search Engines and directories ( Google,

etc)etc)

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Rate of DiffusionRate of Diffusion

Each generation of technology ( telegraph, Each generation of technology ( telegraph, telephone,radio, satellite to cable TV, VCRs) had an telephone,radio, satellite to cable TV, VCRs) had an increasingly rapid rate of diffusionincreasingly rapid rate of diffusion

Key is where it reaches ‘mass’ or majority ( 60% or Key is where it reaches ‘mass’ or majority ( 60% or more) of consumers.more) of consumers.

Internet has done so within one decade: only other Internet has done so within one decade: only other technology to do so, but not quite as fast were the VCR technology to do so, but not quite as fast were the VCR and cell phonesand cell phones

Now well over 75% of Canadians have access: that Now well over 75% of Canadians have access: that number rises to 100% under 25number rises to 100% under 25

The Internet the fastest techology in rate of social The Internet the fastest techology in rate of social adaptionadaption

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ImpactsImpacts

Changed the way we workChanged the way we work Accellerated space time compression: Accellerated space time compression:

globalization processesglobalization processes Convergence of computers and distribution Convergence of computers and distribution

allows greater efficiency of control and allows greater efficiency of control and communicationcommunication

Much cheaper to sell via Internet than in person ( Much cheaper to sell via Internet than in person ( 1/1001/100thth cost per transaction for banks, airlines) cost per transaction for banks, airlines)

Average person is now estimated to spend 187 Average person is now estimated to spend 187 hours a year on line ( source: Penguin Media and hours a year on line ( source: Penguin Media and Information 2003)Information 2003)

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Social Transformations of Social Transformations of the Internetthe Internet

Utopic VisionsUtopic Visions Breaks oligopoly powerBreaks oligopoly power Allows user control over media Allows user control over media

selected, compiled, usedselected, compiled, used Provides new forms of social Provides new forms of social

connection beyond space basedconnection beyond space based New communities of interest may New communities of interest may

form ( beyond borders)form ( beyond borders) Together with other technologies Together with other technologies

allow development of artificial allow development of artificial intelligence/body/intelligence intelligence/body/intelligence augmentationaugmentation

A Democratic RealizationA Democratic Realization

Dystopic VisionsDystopic Visions Reinforces and extends it ( US Reinforces and extends it ( US

controls 65% share of world Internet controls 65% share of world Internet server hosts)server hosts)

Keeps user in ‘invisible walled Keeps user in ‘invisible walled gardens’gardens’

Has enabled social predation: largest Has enabled social predation: largest use for pornography /weapons and use for pornography /weapons and illicit drug/and stalking on lineillicit drug/and stalking on line

New market intelligence aggregating New market intelligence aggregating in unprecedented scope: data in unprecedented scope: data shadows and on line surveillanceshadows and on line surveillance

Few use the Net for political news, Few use the Net for political news, mobilization: while alt.news and other mobilization: while alt.news and other organizations are growing: organizations are growing: commercial search engines bury commercial search engines bury them so they are difficult to find…thus them so they are difficult to find…thus an authoritarian politics continued, an authoritarian politics continued, not a democratic onenot a democratic one

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World Wide WebWorld Wide Web

Between 22 and 800 million sites– less than Between 22 and 800 million sites– less than half indexedhalf indexed

Main search engines:Main search engines: Google (500 m page estimate)Google (500 m page estimate) Alta Vista294)Alta Vista294) YahooYahoo Iwon,Iwon, Northern LightNorthern Light Fast Fast

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Industry StructureIndustry Structure

No one owner of InternetNo one owner of Internet ISP providers route through a tangled web of other providersISP providers route through a tangled web of other providers One dominant PC software manufacturer: Microsoft ( Internet One dominant PC software manufacturer: Microsoft ( Internet

Explorer)Explorer) Decade long anti trust suit settled out of courtDecade long anti trust suit settled out of court Like AT&T, US Department of Justice concerned about dominant Like AT&T, US Department of Justice concerned about dominant

market power, and predatory competition market power, and predatory competition Until 1990s, little competition between telephones and cable Until 1990s, little competition between telephones and cable

companies: now startingcompanies: now starting Late 1990s a wave of Stock Speculation and large scale mergers Late 1990s a wave of Stock Speculation and large scale mergers

for dot com sector just before its crashfor dot com sector just before its crash AOL ( which owns Netscape) tookover Time Warner: sign of new AOL ( which owns Netscape) tookover Time Warner: sign of new

technology surpassing oldtechnology surpassing old Emergence of little known Emergence of little known Netscapes of PowerNetscapes of Power

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Ideology of the InternetIdeology of the Internet

Electronic Freedom Electronic Freedom FoundationFoundation Neo liberal/New MediaNeo liberal/New Media FreeFree EgalitarianEgalitarian DecentralizedDecentralized Ad HocAd Hoc Open and peer to peerOpen and peer to peer ExperimentalExperimental AutonomousAutonomous AnarchicAnarchic

Media Oligopolies ( Incumbent Media Oligopolies ( Incumbent Media)Media) Social Responsibility model: but Social Responsibility model: but

self not government regulationself not government regulation For ProfitFor Profit HierarchicalHierarchical Systematized and CentralizedSystematized and Centralized PlannedPlanned ProprietaryProprietary PragmaticPragmatic AccountableAccountable OrganizedOrganized ReliableReliable Source: Richard Campbell, Media Source: Richard Campbell, Media

and Culture, 41.and Culture, 41.

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The Business Case for On The Business Case for On line Start Upsline Start Ups

Sector characterised by rapidly falling costsSector characterised by rapidly falling costs Transistorization etc.Transistorization etc. Costs for average computer falling 30% per year ( just 0.01% of costs Costs for average computer falling 30% per year ( just 0.01% of costs

in 1970)in 1970) E commerce applications growing, but still less than 5% of E commerce applications growing, but still less than 5% of

retail( slower than supposed)retail( slower than supposed) Personal messaging ( email) very highPersonal messaging ( email) very high Use for Information /Research high: but rise of subscription media Use for Information /Research high: but rise of subscription media

( eg. Newspaper on line, growing only among global travel ( eg. Newspaper on line, growing only among global travel segment)segment)

Drive to get video downloadable for entertainment (video cell Drive to get video downloadable for entertainment (video cell phones banned in washrooms)phones banned in washrooms)

Still largest volume of business is porn worldwideStill largest volume of business is porn worldwide

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Globalization of the Globalization of the InternetInternet

US has privatized domain names but retained control US has privatized domain names but retained control over their allocationover their allocation

This is a sore point for Europe and other powerful This is a sore point for Europe and other powerful economic regionseconomic regions

Internet content providers are estimated to be 98% Internet content providers are estimated to be 98% English, 87% commercial, and dominantly US in originEnglish, 87% commercial, and dominantly US in origin

Other foreign governments now trying to:Other foreign governments now trying to: Invest in promotion of infrastructureInvest in promotion of infrastructure Offer government services on lineOffer government services on line Promote the development of indigenous servicesPromote the development of indigenous services

( eg. Canada: New Media Content Fund at Telefilm and the ( eg. Canada: New Media Content Fund at Telefilm and the Canadian Television Fund)Canadian Television Fund)

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Canadian Shape of Canadian Shape of ConvergenceConvergence

Links telecom and broadcast and newsLinks telecom and broadcast and news No computer sectorNo computer sector Does link portals and so onDoes link portals and so on First impacts of convergence have been First impacts of convergence have been

to de-localize news and media productionto de-localize news and media production Consolidation of media productionConsolidation of media production Centralization in a few citiesCentralization in a few cities

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Regulation of the Regulation of the InternetInternet

Canada ‘s CRTC decided in 1999 not to regulate the Internet : to Canada ‘s CRTC decided in 1999 not to regulate the Internet : to leave it to open competitionleave it to open competition

Australia and Europe are taking very different directionsAustralia and Europe are taking very different directions 1996 US Telecommunications Act ( calling for deregulation) is 1996 US Telecommunications Act ( calling for deregulation) is

opposed world wide: opposed world wide: It is essentially impossible for one country to act as a content It is essentially impossible for one country to act as a content

gatekeeper for a world community– Michael Epstein, quoted in gatekeeper for a world community– Michael Epstein, quoted in Campbell, 57.Campbell, 57.

Hate and offensive contents are of growing social concern Hate and offensive contents are of growing social concern ( especially sexual predation on the Net)( especially sexual predation on the Net) 1996 US Communications Decency Act made it a felony to transmit 1996 US Communications Decency Act made it a felony to transmit

obscene, indecent, or harassing material on the Internet where obscene, indecent, or harassing material on the Internet where children might see it: struck down n grounds Internet no different from children might see it: struck down n grounds Internet no different from a book store: not like broadcast ACLU v. Janet Reno, 1998)a book store: not like broadcast ACLU v. Janet Reno, 1998)2323

Rise of ‘filters’/ ratings? On line entertainmentRise of ‘filters’/ ratings? On line entertainment

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““Hacktivism”Hacktivism”

Development of Open Source Code: Linux which is free open Development of Open Source Code: Linux which is free open source operating system challenges Microsoftsource operating system challenges Microsoft

File sharing “coops” of the type of Napster ( trading MP3s) File sharing “coops” of the type of Napster ( trading MP3s) growinggrowing

““junk” and growth of virusesjunk” and growth of viruses Romantic vision of small content providers surging on the netRomantic vision of small content providers surging on the net

Eg. The ‘garage bands’ now can find an audience; the poet Eg. The ‘garage bands’ now can find an audience; the poet self publish, the digital video camcorder allow the production of self publish, the digital video camcorder allow the production of broadcast quality documentaries for $20,000 versus 1.2 million broadcast quality documentaries for $20,000 versus 1.2 million in the TV industryin the TV industry

A technologically optimistic view: technology as emancipatory, A technologically optimistic view: technology as emancipatory, “revolutionary” shattering the powers of entrenched business, “revolutionary” shattering the powers of entrenched business, cultural authoritiescultural authorities What Winseck in the courseware calls ‘fantasy’What Winseck in the courseware calls ‘fantasy’

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Intellectual Property LawIntellectual Property Law

Part of Intellectual Property LawPart of Intellectual Property Law Governs the realm of inventions ( Patent Governs the realm of inventions ( Patent

Law) and brands or names ( Trade Mark Law) and brands or names ( Trade Mark Law), Trade Secrets ( Commercial Law) Law), Trade Secrets ( Commercial Law) and Copyrightand Copyright

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The Canadian Copyright The Canadian Copyright ActAct

““protection”protection” For the life of the author plus 50 yearsFor the life of the author plus 50 years Where the creator has the sole right to perform the creative act, Where the creator has the sole right to perform the creative act,

grant permission or a “license” to reproduce it, or copy it.grant permission or a “license” to reproduce it, or copy it. What is not copyrightable:What is not copyrightable:

Facts– but the compilation of them ( i.e how they are interpreted, is)Facts– but the compilation of them ( i.e how they are interpreted, is) Ideas- unless they are manifest in a drawing, paper, or written form Ideas- unless they are manifest in a drawing, paper, or written form

( see Vivian and Maurin, page 365)( see Vivian and Maurin, page 365) Copyright: important in book publishing, sound tracks to films, Copyright: important in book publishing, sound tracks to films,

films, musicfilms, music All TV and radio based on copyright payment to the performers All TV and radio based on copyright payment to the performers

they usethey use Increasingly important in international trade, all forms of academic Increasingly important in international trade, all forms of academic

expressionexpression

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Canadian Copyright Canadian Copyright AgenciesAgencies

CANCOPY: 130 coursewareCANCOPY: 130 courseware SOCANSOCAN

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US Digital Millenium US Digital Millenium Copyright Act ( 1998)Copyright Act ( 1998)

Computer users who copy or distribute Computer users who copy or distribute the digital expression of others without the digital expression of others without their permission are liable to prosecutiontheir permission are liable to prosecution

ISP’s may avoid liability if they police and ISP’s may avoid liability if they police and remove offendersremove offenders

Arose because of spread of MP3 ( a Arose because of spread of MP3 ( a digital compression technology)digital compression technology)

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NapsterNapster

Before 1999, just 5 companies, court cases on Before 1999, just 5 companies, court cases on price fixing underwayprice fixing underway

Developer launches Website wi 2 mi per dayDeveloper launches Website wi 2 mi per day Called P to P networkingCalled P to P networking Allowed visitors to search for files on other MP3 users’ hard Allowed visitors to search for files on other MP3 users’ hard

drive and download to burn their own CDs: control over drive and download to burn their own CDs: control over compilation shifts to consumerscompilation shifts to consumers

‘‘freeware’: since Napster’s server did not house or archive the freeware’: since Napster’s server did not house or archive the music, the owners thought they were exempt from copyright law music, the owners thought they were exempt from copyright law and reasoned that prosecution should happen at the individual and reasoned that prosecution should happen at the individual level: since so dispersed and large ( estimated in the millions a level: since so dispersed and large ( estimated in the millions a month) it was believed it was not possible to enforce the lawmonth) it was believed it was not possible to enforce the law

Napster’s early success launched a wave of imitators: Gnutella, I Napster’s early success launched a wave of imitators: Gnutella, I mesh and XXXmesh and XXX

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The Napster Case (see The Napster Case (see Fleras: 262)Fleras: 262)

Musical Recording Industry argued Napster Musical Recording Industry argued Napster infringed copyright– even Metallica!infringed copyright– even Metallica!

Damages estimated in the millionsDamages estimated in the millions Refused to admit free sampling in fact Refused to admit free sampling in fact

increased exposure to music: eventual increased exposure to music: eventual purchase purchase

Lined up a number of musicians to argue that Lined up a number of musicians to argue that the financial damage was to artists ( not the the the financial damage was to artists ( not the the multinationals)multinationals)

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Napster defenseNapster defense

An information sourceAn information source Not ‘housing’ or copyingNot ‘housing’ or copying Intention to move to a subscription Intention to move to a subscription

serviceservice Struggled to settle out of courtStruggled to settle out of court Agreed to charge a monthly feeAgreed to charge a monthly fee Purchased by BertelsmannPurchased by Bertelsmann Lost CaseLost Case

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Effects of NapsterEffects of Napster

Now usurped in the market ( Morpheus , Kazaa and others) but Now usurped in the market ( Morpheus , Kazaa and others) but trying a comebacktrying a comeback

Victor? : to large companies:Victor? : to large companies: BUT– they introduced 2 tier pricing to allow new artists to break inBUT– they introduced 2 tier pricing to allow new artists to break in They reduced price of CDsThey reduced price of CDs More services experimenting with subscription and transaction feesMore services experimenting with subscription and transaction fees Major transformation in Music HappeningMajor transformation in Music Happening

Victor? To consumersVictor? To consumers Forcing a major rethink of copyrightForcing a major rethink of copyright Hierarchy of value: new versus brand artists merit more protectionHierarchy of value: new versus brand artists merit more protection Should IP be free? It takes a community to raise an artist. Should IP be free? It takes a community to raise an artist.

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The ArgumentThe Argument

Fleras: intrusion of commercial interests Fleras: intrusion of commercial interests and government regulation has and government regulation has compromised the regulatory potential of compromised the regulatory potential of the Internetthe Internet McLuhan: the inception of a new media McLuhan: the inception of a new media

casts into sharper relief the premises, casts into sharper relief the premises, priorities and power relations of existing priorities and power relations of existing media ( page 249).media ( page 249).

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Crucial QuestionsCrucial Questions

Should those who control the medium Should those who control the medium also control the message?also control the message? Cases: GayTV and Shaw CableCases: GayTV and Shaw Cable BCE /CTV and Independent FilmBCE /CTV and Independent Film Sympatico(Bell) and Oliver Hate SiteSympatico(Bell) and Oliver Hate Site

Issue is: will gatekeeper show Issue is: will gatekeeper show preference/discriminate against preference/discriminate against competitors, or evade responsibility?competitors, or evade responsibility?

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The Consumer’s Guide to The Consumer’s Guide to the New Mediathe New Media

1.Question Everything that is seen, heard or 1.Question Everything that is seen, heard or read in new media. ( no FDA)read in new media. ( no FDA)

2. Conclude almost everything is to make 2. Conclude almost everything is to make money for someone.money for someone.

Assume everything is a potential threat to your Assume everything is a potential threat to your privacy:privacy: Source: John Pavlik “ The Structure of the New Source: John Pavlik “ The Structure of the New

Media Industry: in The Media Entertainment Media Industry: in The Media Entertainment Industries, Allyn and Bacon, 2000.Industries, Allyn and Bacon, 2000.

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The Myth of ConvergenceThe Myth of Convergence

Not newNot new Since 19Since 19thth century century Telegraph and global news agencies born Telegraph and global news agencies born

together ( Winseck)together ( Winseck) AT&T ran RCA/Films until State department AT&T ran RCA/Films until State department

busted itbusted it In Canada today, we have one of the most In Canada today, we have one of the most

consolidated media systems in the world, with consolidated media systems in the world, with a high degree of cross-media ownershipa high degree of cross-media ownership

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Risk and Political Risk and Political Economy GameEconomy Game

Inventors of new technologies generate new patents ( ham Inventors of new technologies generate new patents ( ham heaven)heaven)

When market become established: patents bought or litigated When market become established: patents bought or litigated ( crisis of capital for development)( crisis of capital for development)

Incumbent industries either block development or buy out new Incumbent industries either block development or buy out new technologytechnology

If new technology threatens core business of old, then predatory If new technology threatens core business of old, then predatory behavior, or massive buyoutbehavior, or massive buyout

If new technology too risky, then businesses buy not make new If new technology too risky, then businesses buy not make new service.service.

Thus new technologies rarely challenge the incumbents, but over Thus new technologies rarely challenge the incumbents, but over 50 years can see major change in owner players: market efficient 50 years can see major change in owner players: market efficient at reducing risk and adapting to changeat reducing risk and adapting to change

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The Critical Political Economy View: Lost The Critical Political Economy View: Lost in Cyberspace by Dwayne Winseckin Cyberspace by Dwayne Winseck

Sees Intellectual Property Disputes as masking the Sees Intellectual Property Disputes as masking the larger problem: oligopoly of power and controllarger problem: oligopoly of power and control

Internet now dominated by big players, not an ideal Internet now dominated by big players, not an ideal perfect competitionperfect competition

Convergence not new: 19Convergence not new: 19thth and 20 and 20thth century waves and century waves and predicted in Canada since 1971predicted in Canada since 1971

In Canada:In Canada: Rogers allied with Microsoft and AT&TRogers allied with Microsoft and AT&T CanWest: news and TV and radioCanWest: news and TV and radio Bell Globemedia, CTV,Expressvue, Globe and Mail and Bell Globemedia, CTV,Expressvue, Globe and Mail and

Sympatico, largest ISPSympatico, largest ISP

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Impacts of Cross Media Impacts of Cross Media OwnershipOwnership

Now vertically and horizontal Now vertically and horizontal companies can control all companies can control all aspects of messageaspects of message

Should those who control the Should those who control the medium also control the medium also control the message?message?

Yes: allows economies of Yes: allows economies of scale, more money reinvested scale, more money reinvested in content, better assumption in content, better assumption of risk, more choice and of risk, more choice and convenience for consumersconvenience for consumers

No: debt means less No: debt means less investment in content, loss of investment in content, loss of jobs, avoidance of risk, less jobs, avoidance of risk, less choice and higher prices for choice and higher prices for consumers ( Winseck, 326)consumers ( Winseck, 326)

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Canadian ArgumentCanadian Argument

Canada does have more choice among servicesCanada does have more choice among services Highest level of cable, cell, Internet penetration in G-8Highest level of cable, cell, Internet penetration in G-8 Chronic shortage/ market failure in high cost productionChronic shortage/ market failure in high cost production Shrinking public investment in non commercial or community mediaShrinking public investment in non commercial or community media Indicators NewsIndicators News

More news services, fewer private foreign news bureaus, more reliance on More news services, fewer private foreign news bureaus, more reliance on wire services; diminishing number of jobswire services; diminishing number of jobs

Indicator EntertainmentIndicator Entertainment Digital channels not allied with big Canadian companies on verge of Digital channels not allied with big Canadian companies on verge of

bankruptcybankruptcy Can’t get carried by cable companies, or carried at too high a wholesale rateCan’t get carried by cable companies, or carried at too high a wholesale rate Services high level of repetition( estimated more than 66% reruns)Services high level of repetition( estimated more than 66% reruns) Lag of asymmetry: late on video file swapping, speed of video downloadsLag of asymmetry: late on video file swapping, speed of video downloads

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Winseck’s conclusionWinseck’s conclusion

In short, there is a resilience in the “old media” In short, there is a resilience in the “old media” that will not yieldthat will not yield

Incumbents battle new entrants and either buy Incumbents battle new entrants and either buy them up or forge partnerships, or force them them up or forge partnerships, or force them out of businessout of business

People still mostly rely on TV for their political People still mostly rely on TV for their political informationinformation

Internet works to extend and conserve existing Internet works to extend and conserve existing market dominance in cyberspacemarket dominance in cyberspace

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Netscapes of PowerNetscapes of Power

Must watch “netscapes of power”: rise of Must watch “netscapes of power”: rise of gatekeepers and “walled gardens”gatekeepers and “walled gardens” Trend to bundling services for convenienceTrend to bundling services for convenience Styling information services for personal Styling information services for personal

preferences– and not challenging these ( narrower preferences– and not challenging these ( narrower and narrower homogenous taste communities)and narrower homogenous taste communities)

Technologies of discrimination: owner preference in Technologies of discrimination: owner preference in placing subsidiaries at front of retail shelf and placing subsidiaries at front of retail shelf and burying competitive service providersburying competitive service providers

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Fleras: Rhetoric and Fleras: Rhetoric and Reality ( p.269)Reality ( p.269)

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Rhetoric & RealityRhetoric & Reality

Subversive/FreewheelSubversive/Freewheel EgalitarianEgalitarian Anarchic Power to the Anarchic Power to the

PeoplePeople GlobalizingGlobalizing FreeFree Empowering and Empowering and

EnlighteningEnlightening DiversityDiversity

Corporatized/ControlCorporatized/Control Ehaves/EhavenotsEhaves/Ehavenots Authoritarian power to Authoritarian power to

the dollarthe dollar AmericanizingAmericanizing Marketing and Marketing and

AdvertisingAdvertising Make MoneyMake Money ConformityConformity

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Social Issues: Social Issues: SurveillanceSurveillance

Network architecture is now “smart”Network architecture is now “smart” Before, telcos did not know the content of messagesBefore, telcos did not know the content of messages Now, they do. Bits are monitored, stored in charting Now, they do. Bits are monitored, stored in charting

flow and effective serviceflow and effective service Nortel and Cisco can establish network architectures Nortel and Cisco can establish network architectures

which:which: Identify each traffic type-Web, email, voice, video…and isolate Identify each traffic type-Web, email, voice, video…and isolate

the type of application even down to the type of application even down to specific brands, specific brands, by the by the interface used,interface used, by the by the user typeand individual user user typeand individual user identificationidentification or by the or by the site address (winseck:331)site address (winseck:331)

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Surveillance 2Surveillance 2

Rise of “cookies” ( spies on content, personal Rise of “cookies” ( spies on content, personal information and preferences jeapordizing privacy)information and preferences jeapordizing privacy)

Technological potential of building a complete ‘data Technological potential of building a complete ‘data shadow’ of the consumer, to better market to themshadow’ of the consumer, to better market to them

Emerging self regulation of servicesEmerging self regulation of services Eg restrictive private contracts for use, limiting video Eg restrictive private contracts for use, limiting video

downloads, for example, in absence of regulation permitting it.downloads, for example, in absence of regulation permitting it. Or: @Home…wide open powers to remove offensive matter Or: @Home…wide open powers to remove offensive matter

which is too prone to authoritarian censorshipwhich is too prone to authoritarian censorship Still major fights: first over spam ( reaccessing your Still major fights: first over spam ( reaccessing your

email accounts, and next data shadowing/market email accounts, and next data shadowing/market surveillance)surveillance)

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The Walled GardenThe Walled Garden

AOL Time Warner termAOL Time Warner term Disney tooDisney too Keep users within designated zones for as long as Keep users within designated zones for as long as

possible ( Winseck, 335)possible ( Winseck, 335) How?How?

By creation of content and service menus, organization of By creation of content and service menus, organization of hyperlinks, bias of search engings, network architecture, hyperlinks, bias of search engings, network architecture, promotion, content synergies,elimination of bypassespromotion, content synergies,elimination of bypasses

Creation of walled gardens: safe, predictable, brandedCreation of walled gardens: safe, predictable, branded Eg: Disney assumes role of immigration officer in AOL’s world: Eg: Disney assumes role of immigration officer in AOL’s world:

if people enter their site, and then leave AOL, contract can be if people enter their site, and then leave AOL, contract can be cancelled ( Winseck, 336)cancelled ( Winseck, 336)

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The Information GapThe Information Gap

Rest of the World is less than one-tenth on the Rest of the World is less than one-tenth on the way to cyberspaceway to cyberspace

Vast continents ( Africa) left out of “global Vast continents ( Africa) left out of “global information highway”information highway”

Rich consumers and those educated elites the Rich consumers and those educated elites the first to embrace computers and the Internetfirst to embrace computers and the Internet

Poor, uneducated slow: many countries do not Poor, uneducated slow: many countries do not have policies to help individuals(eg. Computers have policies to help individuals(eg. Computers in the home), although do help schoolsin the home), although do help schools

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The Knowledge GapThe Knowledge Gap

Information and Knowledge gap is widening: Information and Knowledge gap is widening: despite mass penetration of the Internet in despite mass penetration of the Internet in Canada, still high levels of illiteracy, ( under Canada, still high levels of illiteracy, ( under 25%) relatively low levels of university 25%) relatively low levels of university education ( several points below Europe), and education ( several points below Europe), and growing child poverty: estimates place one in growing child poverty: estimates place one in four to one in three kids below poverty levelfour to one in three kids below poverty level

Structurally higher levels of unemployment, Structurally higher levels of unemployment, precarious jobsprecarious jobs

Gendered landscape of technological controlGendered landscape of technological control