EDTECH
Gore Tax Hike (WSJ)
Plugged In: Biz Schools Teach Managing In Net Age (SJ Merc)
MERGERS/ALLIANCES
Cox To Buy TCA Cable For $3.26 Billion (WSJ)
AOL Signs 4 Deals in Bid to Get TV Access (WP)
OWNERSHIP
In San Francisco, A Revival Of Newspaper Speculation (NYT)
INTERNET
Anti-NATO Hackers Sabotage 3 Web Sites (WP)
Internet Companies Prepare For Privacy Report Card (SJ Merc)
Case: Internet a Civil Rights Issue (WP)
For Dueling Lawyer, The Internet Is Unlikely Referee (WSJ)
Survey Indicates Increased Use of Filters (CyberTimes)
ADVERTISING
Falwell Lights Into Budweiser (WP)
MUSIC ONLINE
Sony, Following Universal, To Sell Digital Music Online (NTY)
Yahoo To Offer Net Radio (CyberTimes)
Grateful Dead Lets Fans Swap Concert Recordings Over Web (SJ Merc)
EDTECH
GORE TAX HIKE
Issue: EdTech
[Editorial] The E-rate, a program that provides schools and libraries with
access to the Internet, is little more than an indulgent "pet project" of
Vice President Gore, says the Wall Street Journal. Mr.Gore's allies and
contributors, such as those in Silicon Valley and at the National Education
Association, argue the authors, are the real ones who the reap rewards from
the tax on phone companies. The program, the Journal claims, may even
possibly be illegal, because taxes should originate with the House Ways and
Means Committee, and not with a federal agency such as the Federal
Communications Commission (FCC). Now, FCC chairman William Kennard has plans
to almost double the program's original budget. The increase will reportedly
result in an average charge of 40 cents a month to phone customers. The
Journal dismisses the FCC claim that these new costs will be offset by a
reduction of long distance access charges.
[SOURCE: Wall Street Journal (A22), AUTHOR: Wall Street Journal Staff]
(http://wsj.com/)
MERGERS/ALLIANCES
AOL SIGNS 4 DEALS IN BID TO GET TV ACCESS
Issue: Interactive TV
Anticipating using TVs for e-mail, Internet access, and other services in
homes without computers, America Online announced corporate alliances
yesterday with satellite television company Direct TV and three other
corporations. Hughes Network Systems and Philips Electronics will design set
top receivers, and Network Computer Inc. will provide the software for the
system. AOL anticipates TV viewers will be able to watch ordinary shows and
at the same time use AOL services. Yesterday's deals are step one in a
long-term strategy that the company calls "AOL Anywhere." One industry
analyst called it "the beginning of the next phase for AOL." The country's
largest online service will be competing with Microsoft's WebTV for Internet
service via
television. Recently AT&T is threatening to become its foremost rival with
its emphasis on providing Internet service through cable connections.
Subscribers to AOL TV could use the service with cable TV, broadcast TV or
the DirecTV satellite service. AOL would still come in through the phone
line; the set top boxes would convert its signals for display on TV.
[SOURCE: Washington Post (A1), AUTHOR: Shannon Henry]
(http://www.washingtonpost.com/wp-srv/business/daily/may99/aol12.htm)
See also:
AOL DEAL ENVISIONS WEB SURFING VIA SATELLITE
[SOURCE: Wall Street Journal (B1), AUTHOR: Thomas Weber and Andy Pasztor]
(http://wsj.com/)
COX TO BUY TCA CABLE FOR $3.26 BILLION
Issue: Merger/Cable
Indicative of the recent wave of consolidations sweeping the cable industry,
Cox Communications is expected to announce their plans to acquire TCA cable
for $3.26 billion, in addition to the assumption of $736 million in debt.
The deal would expand Cox's reach into smaller markets, where few large
cable systems have shown interest. Cox, one of the first cable companies to
prepare its systems for two way digital services, was also attracted to TCA
because of its upgraded systems. Until now, Cox has stayed away from much of
the merger hype -- attempting to focus on getting better, not bigger.
[SOURCE: Wall Street Journal (A3), AUTHOR: Leslie Cauley]
(http://wsj.com/)
OWNERSHIP
IN SAN FRANSICO, A REVIVAL OF NEWSPAPER SPECULATION
Issue: Newspapers/Ownership
The family that owns Chronicle Publishing in San Francisco has called on
investment bankers to evaluate the company's assets. Observers say this move is
an indicator that the company is preparing to sell The San Francisco
Chronicle, the country's 11th largest newspaper, and NBC affiliate KRON-TV.
Since 1965, when The San Francisco Chronicle and its afternoon rival, The
San Francisco Examiner entered a joint operating agreement, the two papers
have been losing suburban readership. A likely buyer is the owner of The
Examiner -- Hearst. The two papers run joint business offices but run
separate, highly competitive newsrooms. Anthony Ridder, chairman and chief
executive of Knight Ridder, whose San Jose Mercury News competes with The
Chronicle, says a buyer would find Chronicle Publishing "very attractive
properties." The assets are valued at over $1 billion. It is not clear if
the buyer would be able to purchase both KRON and The Chronicle. Chronicle
Publishing has a FCC granted waiver, enabling the company to own a major
newspaper and TV station in the same market. A new owner, however, may not
receive the same waiver.
[SOURCE: New York Times (C6), AUTHOR: Felicity Barringer]
(http://www.nytimes.com/yr/mo/day/news/financial/chronicle-publishing.html)
SURVEY INDICATES INCREASED USE OF FILTERS
Issue: Internet/Content
According to two recent studies, the use of filters to block objectionable
Internet content is increasing. Quality Education Data, a Denver-based
education market research company, found that 58% of 403 public school
teachers surveyed said Internet access was filtered at their school. That is
an increase from the 38% reported last year. A survey of parents, by the
Annenberg Public Policy Center, found almost a third of online American
households with children use filting software. The study also found that
parents have "mixed feelings" about the Internet. While 80% said their kids
use the Internet for help with homework, 77% said they feared kids would
give out personal information, and 60% said that too much time online would
lead their kids to become more isolated. In addition, 60% disagreed with a
statement that the Internet was safe for children. Makers of Internet
filters, such as Cyber Patrol and Net Nanny, report a huge increase in sales
since the shootings at Littleton, CO. Parry Aftab, executive director of
Cyberangels, an online safety group, says the daily inquiries about
filtering have jumped from 2 per day to 50. Critics of filters are not so
positive about their increased use. Jamieson McKenzie, editor of From Now
On, an online journal on education technology, sees theincreased use of
filters in schools as misguided. Jonathan Wallace, an Internet lawyer and
founding member of The Censorware Project,says filters are
"placebos" and often block access to legitimate material.
[SOURCE: CyberTimes, AUTHOR: Pamela Mendels]
(http://www.nytimes.com/library/tech/99/05/cyber/education/12education.html)
ANTI-NATO HACKERS SABOTAGE 3 WEB SITES
Issue: Internet
Computer hackers, protesting NATO's bombing of the Chinese embassy in
Belgrade late Sunday, inserted messages into Web pages operated by the
Energy Department (DOE), the Interior Department (DOI), and the National
Park Service. An Interior spokesman said the Interior Department hacker "was
traced back to China by DOI computer experts." The message on the DOE site
included phrases like "Protest U.S.A.'s Nazi action! Protest NATO's brutal
action!" DOE officials said electronic firewalls protected other parts of
the departmental computer systems from attack. The White House Web site was
shut down Monday night after attempts were made Monday morning to hack into
its system.
[SOURCE: Washington Post (A25), AUTHOR: Stephen Barr]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-05/12/157l-051299-idx.html)
INTERNET COMPANIES PREPARE FOR PRIVACY REPORT CARD
Issue: Privacy
An industry-funded survey of companies on the Internet, expected to be
released today, will grade the efforts of roughly 360 Internet sites for
their efforts to protect the personal details they collect about consumers.
Last summer a similar study found that only 14% of sites adequately warned
how they used private information they collected about customers. The
Federal Trade Commission, expected to recommend to Congress this summer
whether new Internet privacy laws are needed, has said it wanted to see
results from the study before making any decisions. Privacy groups complain
that the online industry has done a poor job protecting customer
information, noting that some Web sites sell the information to third-party
advertisers
and others. Some critics complain that the latest study didn't measure
whether a Web site's privacy policy was sufficient, but just looked to see
whether one existed.
[SOURCE: San Jose Mercury News, AUTHOR: Associated Press]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/055591.htm)
CASE: INTERNET A CIVIL RIGHTS ISSUE
Issue: Minorities
Equal access to online services is "the civil rights issue of the 21st
century," according to America Online Chairman Steve Case speaking to the
Leadership Conference on Civil Rights in Washington Tuesday. Using figures
from a 1998 Commerce Department study on minority access to the Internet,
Case said that whites are more than twice as likely to own a computer than
blacks and Hispanics. Case also called for work place diversity and said
that low numbers of minority students graduating in the technical sciences
gave him
reason to be concerned. He did not, however, provide figures for minority
employment at AOL.
[SOURCE: Washington Post (Online), AUTHOR: Associated Press]
(http://search.washingtonpost.com/wp-srv/WAPO/19990511/V000093-051199-idx...)
FOR DUELING LAWYER, THE INTERNET IS UNLIKELY REFEREE
Issue: Internet
Just as people can fill prescriptions and obtain degrees online, now they
can also settle legal disputes via the World Wide Web. A new Wed site,
cyber$ettle.com, allows lawyers to make and accept settlement offers online.
The cases, most of which are personal injury claims, are settled through a
blind-bidding system. A computer program automatically settles the case when
the parties' offers are in $5,000 or 30% of each other. "In some cases it's
more effective, because the parties don't get a chance to yell at each
other," says Ethan Katsh, a legal studies professor who oversees the program.
[SOURCE: Wall Street Journal (B1), AUTHOR: Ann Davis]
(http://wsj.com/)
ADVERTISING
FALWELL LIGHTS INTO BUDWEISER
Issue: Advertising
Last month, Jerry Falwell complained in his e-mail newsletter, Falwell
Confidential, that Anheuser-Busch "presents two Bud-drinking homosexual men
in a hand-holding posture." Actually neither of the men is shown drinking a
Bud. But they really are holding hands. So far, the ad ("Be yourself and make
it a Bud Light") has run only in EXP, a small, gay biweekly magazine in St.
Louis, and is only scheduled to run in other gay publications.
Anheuser-Busch set up a toll-free line for callers to register support for
the new campaign. After Falwell complained that the company had not set up a
number to register opposition, Anheuser-Busch promptly set up a separate
line for callers to do just that. The company will not say which line has
generated more calls. The company tactfully says;"Today's consumer is not
one of a specific gender, race, geography or orientation." Budweiser been
running less overt ads in gay magazines for several years.
[SOURCE: Washington Post (C1), AUTHOR: Hanna Rosin]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-05/12/046l-051299-idx.html)
MUSIC ONLINE
GRATEFUL DEAD LETS FANS SWAP CONCERT RECORDINGS OVER WEB
Issue: Internet
Spokesmen for the Grateful Dead, pioneers in using freely available live
recordings as a promotional tool, announced Tuesday the band will let its
fans legally swap online recordings of live performances. At a time some
industry observers are warning that Web distribution of pirated music could
destroy the market for compact discs, the Dead stand as a compelling example
of the opposite principle. Using a file-compression format known as MP3,
millions of people have begun using their computers as jukeboxes. Next week
the groundbreaking rap group Public Enemy will release its latest album in MP3
format on the Web -- one month before it hits stores. Industry observer Mark
Hardie, of the market analysis firm Forrester Research, predicted that the
widespread acceptance of MP3 would prompt even the major record labels to
adopt a business model once unique to the Dead. The Dead's policy also
includes the provision that no third parties may profit from the band's music,
either by selling recordings directly or by making money off advertising or
other services.
[SOURCE: San Jose Mercury News, AUTHOR: Stephen Buel]
(http://www.mercurycenter.com/svtech/news/indepth/docs/dead051299.htm)
SONY, FOLLOWING UNIVERSAL, TO SELL DIGITAL MUSIC ONLINE
Issue: Internet
Sony announced Wednesday that it will use Microsoft technology to sell music
digitally online. Following Universal's announcement last week that it will use
Microsof's rival, Intertrust Technologies to sell music online, the two
companies are getting ahead of the industry group -- Secure Digital Music
Initiative -- set to create industry standards by June 30. Fred Ehrlich of Sony
says the company will wait until the standards are released before they begin
selling, but that "it doesn't hurt the record industry to try to establish
relationship in anticipation." The Microsoft technology, Media 4.0, allows
songs to be downloaded from the Internet, stored or copied to a computer hard
disk, CD or floppy disk. The software prevents the music from being played
unless "the user pays for them or meets other licensing agreements," said
Microsoft's Will Poole.
[SOURCE: New York Times (C2), AUTHOR: Matt Richtel]
(http://www.nytimes.com/library/tech/99/05/biztech/articles/12sony-music-on
line.html)
YAHOO TO OFFER NET RADIO
Issue: Internet/Radio
Yahoo unveiled Yahoo Radio that offers 10 channels of music delivered over the
Internet. Erik Schwartz, senior producer of Yahoo Radio, said there is only one
difference between Yahoo Radio and traditional radio, "we're using the Internet
as a broadcasting medium." Like Lycos Radio Network, to listen to Yahoo
radio, online audiences must have a PC with a sound card and free software
from Real Networks. Earlier this month, Arbitron Company and Edison Media
Research released a study that found the number of people listening to the
radio online has doubled over the last six months. There are several
advantages of online radio for advertisers. Whereas banner ads may be
ignored, it is hard to avoid ads played between songs. People can do other
things while listening as well, which means longer online sessions. Marc
Morgenstern of the American Society of Composers and Performers says the
increased availability of music online is a good thing. "It's good news for
the audience because they can find what they want, and its good news for the
creators because they can find an audience."
[SOURCE: CyberTimes, AUTHOR: Lisa Napoli]
(http://www.nytimes.com/library/tech/99/05/cyber/articles/12radio.html)
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