INTERNET
The Net effect: Evolution or Revolution? (USA)
The Outlook for Cable Access (NYT)
Internet Address Plan Delayed (CyberTimes)
E-COMMERCE
Personalized E-Mail from Retailers (CyberTimes)
RealNetworks, Time Warner Unit Plan Downloading on Web of Selected
Songs (WSJ)
MEDIA & SOCIETY
Culture Has No Infrastructure (NYT)
At Magazines, the Art of Stirring Debate Seems Lost (NYT)
Asian-Americans Try to Figure Out How to Get in the Act,
in TV and Film (ChiTrib)
TELEPHONE
MCI WorldCom Unveils Reduction In Long Distance Rates to 5 Cents (WSJ)
INTERNATIONAL
Russian Newspaper Finds Itself In a Tug of War Over Ownership (WSJ)
Deutsche Bank Part of Group Seeking to Buy Cable Network (NYT)
ANTITRUST
Investigator of Microsoft Unrelenting in His Pursuit (NYT)
INTERNET
THE NET EFFECT: EVOLUTION OR REVOLUTION?
Issue: Internet
Is the Internet the equivalent of the invention of the printing press, or is
it more like the invention of television? If the Internet equals the
printing press, Malone writes, no amount of hype could possibly overdo it.
Internet stocks would not be overvalued -- they'd be long-term bargains at
today's prices. And we should be bracing for one of the most dramatic
upheavals in human history. As a world-changing invention, the Net echoes
many of the characteristics of the printing press. It brings a dramatic drop
in the cost of creating, sending and storing information while vastly
increasing its availability. It breaks information monopolies. Arno Penzias,
Nobel laureate, retired chief scientist for Bell Labs and now a venture
capitalist with New Enterprise Associates, says the effect of the Internet
is huge, but "television had a comparable impact. People don't think of the
impact of television because they can't imagine life without it. But think
of what television has done to morals, family life, body image, wars,
politics, whatever. The Internet and television have comparable impact - and
that's big!"
[SOURCE: USA Today (1B), AUTHOR: Kevin Maney]
(http://www.usatoday.com/money/bcovmon.htm)
THE OUTLOOK FOR CABLE ACCESS
Issue: Cable/Internet
As AT&T, the nation's biggest telephone service company, has moved into the
cable television business, the company has been in battle -- legal, public
relations and lobbying -- with America Online. The fight over "open access"
has been fought at the local level and AOL, the nation's largest gateway to
cyberspace, has consistently argued that AT&T must let Internet carriers
link directly to AT&T's cable systems. Such connections would bypass
communications systems and Web services developed by Excite( at )Home, an
Internet-over-cable company that is backed by many big cable television
players -- including AT&T. AT&T has argued that since it is investing
millions to upgrade cable networks to carry Internet data, it should have
the exclusive right to determine how those systems are used for Internet
access. But AT&T and AOL may be close to a deal that would diminish the role
of Excite( at )Home by giving AOL, and perhaps other ISPs, enhanced aces to
AT&T's system. The deal would be politically expedient and combine the
technical and marketing strengths of the two companies. But for
Excite( at )Home...well, not so good.
[SOURCE: New York Times (C1), AUTHOR: ]
(http://www.nytimes.com/library/tech/99/08/biztech/articles/09access.html)
INTERNET ADDRESS PLAN DELAYED
Issue: Internet/Domain Names
The date to begin full-scale competition in the business of Internet domain
name registration was pushed back again to September 10. The Commerce
Department and Network Solutions continue to negotiate how new companies
will log Internet addresses in the master registry that, so far, has been
maintained by Network Solutions. They are discussing who owns this "phone
directory for the Internet." Policy questions and technical glitches that
have occurred in trying to open up the registry have delayed full-scale
competition. Meanwhile, Sens. Mike DeWine (R-OH) and Herbert Kohl (D-WI) of
the Senate Judiciary Committee's antitrust subcommittee have criticized the
Commerce Department, Network Solutions and ICANN (Internet Corporation for
Assigned Names and Numbers). They have questioned their conduct and said
they "strongly encourage the parties to resolve their differences in a
professional and respectful manner no later than Oct.1, so as to avert the
threat of a disastrous disruption to the functionality of the Internet."
[SOURCE: New York Times (CyberTimes), AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/99/08/cyber/articles/07domain.html)
See Also:
TECHNICAL ISSUES, SQUABBLING DELAY OPENING OF NET-ADDRESS BUSINESS
[SOURCE: Wall Street Journal, AUTHOR: Staff Reporter]
(http://interactive.wsj.com/articles/SB93415958315800589.htm)
COMMERCE, NETWORK SOLUTIONS AGREE TO ADD NEW REGISTRARS
The Department of Commerce and Network Solutions agreed today to add new
domain name registrars, and to extend the test bed phase of the Shared
Registration System until September 10, 1999. See Press Release at URL below.
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/press/dns08061999.htm)
E-COMMERCE
PERSONALIZED E-MAIL FROM RETAILERS
Issue: E-Commerce
"Opt-In" e-mail -- where a customer agrees to receive retail advertisements
via e-mail -- is becoming an increasingly popular marketing practice. These
customers buy from and visit Macy's Web site, for example, more frequently
than others. The "click-through" rates alone are higher than Web banner
advertisements. For privacy, people can unsubscribe to lists and also
stipulate that their e-mail addresses and other personal information not be
shared with outside organizations. "Op-in" marketing, however, is more
difficult for companies with little or no direct marketing experience. And,
analysts say, e-mail marketing messages will have to become more refined as
more e-commerce sites are using e-mail to maintain relationships with
customers and more plan to do so. "Most of the sites I look at understand
that you have to approach the customer as a valuable asset, and you have to
give them something of value," said Kent Anderson president of Macy's.com.
"E-mailing them just to say the sky is blue, and reminding them that Macy's
is out there is a problem."
[SOURCE: New York Times (CyberTimes), AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/99/08/cyber/commerce/09commerce.html)
REALNETWORKS, TIME WARNER UNIT PLAN DOWNLOADING ON WEB OF SELECTED SONGS
Issue: Ecommerce
By next month, RealNetworks and Time Warner's Warner Music Group will offer
selected songs from Warner artists, like Jewel and Edwin McCain, to be
downloaded and played on the Internet. Seen as an aggressive experimental
move, users will be able to play songs using RealNetworks' RealJukebox
software and be presented with links to buy the album from online
retailers. "We see this as a significant learning experience to test how
free music presented securely over the Web can promote the sales of CDs,"
said Paul Vidich, executive vice president of the Warner Music Group.
Companies are testing more digital downloading methods and becoming more
active in establishing standards and protections to take advantage of new
media and to combat piracy. RealNetworks, on the other hand, has also
released a beta version of its RealJukeBox Plus, a more fully featured
version of its player software, and updated its free version of the digital
music system.
[SOURCE: Wall Street Journal (B9), AUTHOR: Kara Swisher]
(http://interactive.wsj.com/articles/SB93414888672356209.htm)
MEDIA & SOCIETY
CULTURE HAS NO INFRASTRUCTURE
Issue: Arts
[Op-ed] A reaction to the Pew Charitable Trusts' announcement to spend $50
million over the next five years on developing a national policy for arts
and culture. The author does not think it is money well spent. American
culture is rich, Marquis argues, precisely because it has no organizing
framework. And there is already a means for public support -- not the
National Endowment for the Arts, but the tax deduction for contributions to
nonprofit organizations. Total giving to cultural endeavors surpass $11
billion/yr and donors include 10% of all households. More than 18 million
Americans volunteer in some area of the arts. "The most crucial aspect of
public involvement with the arts is precisely this lack of structure.
Millions of donors support what they like. This may be messy, but so is
American culture. And policy is the last thing it needs, Marquis concludes.
[SOURCE: New York Times (A19), AUTHOR: Alice Gildfarb Marquis, author of
_Art Lesson: Learning from the Rise and Fall of Public Arts Funding_]
(http://www.nytimes.com/yr/mo/day/oped/09marq.html)
AT MAGAZINES, THE ART OF STIRRING DEBATE SEEMS LOST
Issue: Magazines
"They're glitz bags," said Norman Mailer, when asked to sum up his thoughts
on magazines. "You can't tell one from another. They are so obviously driven
by the ads, that the ads take prominence over the stories." There was a
time, Kuczynski writes, when magazine stories stirred conversation and
thought, when an entire issue of a magazine could be devoted to one long
piece, when the subject matter was controversial. Now, David Halberstam,
says, "A magazine is now a television show, in which a celebrity journalist,
if there is such a thing, interviews someone from Hollywood who is also
either a celebrity, or is someone who knows this week's celebrity killer."
"If you have a 25,000-word piece that attempts to make a big, serious
argument about the state of the world, there aren't many places you're going
to get that published," said Michael Kelly, the editor of National Journal.
"And there were more 25 years ago. There is a world that to some degree does
not exist anymore." Neil Gabler, a cultural historian and author of "Life:
The Movie, How Entertainment Conquered Reality" (Knopf, 1998), said: "In the
old days, when people did talk about magazines, they talked about the big
ones like The Saturday Evening Post, or Life, or Look, and they were not
niche magazines. They generated heat because they were a way for the entire
national community to communicate." Writers are no longer central to our
culture, or to the culture of magazines, Gabler said. "Magazines are not
writer-generated," he said. "They are subject-generated. Almost no one would
go buy a magazine because Norman Mailer has a piece in it. They buy a
magazine because there's a story about Tom Cruise in it. The franchise is on
the subject."
[SOURCE: New York Times (C1), AUTHOR: Alex Kuczynski]
(http://www.nytimes.com/yr/mo/day/news/financial/irrelevant-mags-media.html)
ASIAN-AMERICANS TRY TO FIGURE OUT HOW TO GET IN THE ACT, IN TV AND FILM
Issue: Media & Society
"There are still very few images of Asian-Americas on TV," said Northwestern
professor L.S. Kim. "This makes it very hard for people to think of
Asian-Americans as American figures. So people who were born here are still
asked where they are from and how they learned to speak English so well." A
week-long festival organized by Columbia College Chicago's Center for Asian
Arts and Media -- Now World, New Art: The Asian Artist in America --
included lively discussions about the image of Asian-Americans on television
and in movies. Author Sandra Tsing Loh challenged one panel, however, to
list any possible concrete outcomes of such discussions since none of the
panelists had any power in Hollywood. For the most part, her challenge was
left unanswered.
[SOURCE: Chicago Tribune (Sec 5, p.1), AUTHOR: Monica Eng]
(http://chicagotribune.com/leisure/tempo/printedition/article/0,2669,SAV-990
8090030,FF.html)
TELEPHONE
MCI WORLDCOM UNVEILS REDUCTION IN LONG DISTANCE RATES TO 5 CENTS
Issue: Telephone
MCI WorldCom plans to announce today it is cutting long distance rates
during off-peak hours to as low as five cents a minute. This newest
campaign has customers paying five cents a minute from 7 p.m. to 7 a.m.
weeknights and all weekend long, plus a monthly charge of $1.95. They are
calling the campaign "MCI 5 Cents Everyday" and it covers state-to-state
calls for 108 hours a week. During daytime hours, consumers who pay a
monthly $4.95 fee instead of the $1.95 fee will be charged 10 cents a
minute. The cost is 25 cents a minute if they stick with the $1.95 fee.
This is MCIWorldcom's first major long distance change in five years and
signals that Bernard J. Ebbers, the company's chief executive, is serious
about increasing the company's share of the consumer long distance market,
instead of focusing solely on business customers. Consumer advocates point
out that many consumers think they are paying lower rates but do not
realize they need to enroll in specific plans, or pay a special fee, to get
the lowest rate. If customers aren't on a special plan, they could be
paying 25 cents a minute or more. AT&T says it will be able to keep its
lead in the market by selling long distance along with bundles of other
communications services such as wireless, local calling, cable television
and Internet access. Some analysts predict long-distance eventually will be
free when sold with other packages of services, such as Internet access.
[SOURCE: Wall Street Journal, A3, AUTHOR: Rebecca Blumenstein]
(http://interactive.wsj.com/articles/SB934171449654808521.htm)
INTERNATIONAL
RUSSIAN NEWSPAPER FINDS ITSELF IN A TUG OF WAR OVER OWNERSHIP
Issue: International/Newspapers
A New York investment company and business tycoon Boris Berezovsky are
fighting over Russia's premiere newspaper, Kommersant. Berezovsky told
newspaper staff last Friday that he had secured control of Kommersant and
other sister publications from American Capital, a company that was just set
up three months ago. Berezovsky said his company, Logovaz, had completed the
transaction and that "some formalities still need to be completed but the
process is irreversible." Berezovsky already owns interests in two
television stations in Russia. Last week, Raf Shakirov, Kommersant's editor,
was fired and he said it was because Berezovsky was trying to curb coverage
of his business and political activities. Berezovsky said last week that he
would "try to have an influence only at the level of choosing political
priorities." American Capital has stated that Berezovsky is spreading
propaganda and that they bought an 85% stake in Kommersant Publishing.
Kommersant's principal shareholder, Vladimir Yakovlev, confirmed the deal
with American Capital in a phone interview last month -- but the share
transfer has not been formally registered in Moscow. (And we think we have
media ownership and control issues in the U.S.)
[SOURCE: Wall Street Journal (A15) AUTHOR: Andrew Higgins]
(http://www.wsj.com)
DEUTSCHE BANK PART OF GROUP SEEKING TO BUY CABLE NETWORK
Issue: Merger/Cable
The world's largest bank, Deutsche Bank, plans to bid for part of Deutsche
Telekom's cable television network. The bank is trying to buy cable
networks in Germany, where more than 6,000 privately owned operators serve
about 17 million subscribers. Deutsche Bank is hoping to merge and upgrade
the cable networks and sell them to investors for a higher price. The bank
was attempting to form a group for the investment and did not say how much
it would pay for the cable networks. "The consortium plans to expand the
net and to vigorously extend the television and radio program offerings as
well as to provide additional services for wide-band Internet access and
other telecommunications services," Deutsche Bank said. Last May, the
mammoth bank bought Telecolumbus, Germany's second-largest cable TV network
for about $1.1 billion. Telecolumbus has 200,000 customers in the three
German states where Deutsche Bank is bidding for Telekom's cable network so
it will serve two interests for Deutsche Bank. Other companies showing
interest in the bidding for Deutsche Telekom's cable television networks
are: 1) Mannesmann, an engineering company that owns Germany's No. 1 mobile
phone network; 2) Bertelsmann; 3) Microsoft; 4) PrimaCom, the German cable
operator, and 5) the Amsterdam-based United Pan-Europe Communications.
[SOURCE: New York Times (1B), AUTHOR: Bloomberg News]
(http://www.nytimes.com/yr/mo/day/news/financial/deutsche-cable.html)
See Also:
DEUTSCHE BANK AND VEREINS TO BID FOR CABLE NETWORKS
[SOURCE: Wall Street Journal, A14, AUTHOR: Staff Reporter]
ANTITRUST
INVESTIGATOR OF MICROSOFT UNRELENTING IN HIS PURSUIT
Issue: Antitrust
A look at Phillip Malone and his staff in the Justice Department's San
Francisco office. Mr. Malone's team strongly urged Washington to pursue the
Microsoft case, collected much of the evidence and handled the preparation
for the trial. "The case that has been presented is Phil Malone's case,"
observed David Boies, the trial lawyer for the Justice Dept in the case.
"Take Phil and his San Francisco staff, and this case could have progressed
without anyone else -- and that includes me. It may not have been quite as
dramatic in the courtroom, but the case would have been the same." Tomorrow,
each side of the case will present its "proposed findings of fact," legal
storytelling as each side presents its view of the facts presented in trial.
[SOURCE: New York Times (C1), AUTHOR: Steve Lohr]
(http://www.nytimes.com/library/tech/99/08/biztech/articles/09soft.html)
See Also:
MICROSOFT FAILED TO ARGUE U.S. FAILED TO SHOW THAT SOFTWARE COMPANY IS A
MONOPOLIST
[SOURCE: Wall Street Journal, B8, AUTHOR: John R. Wilke]
(http://interactive.wsj.com/articles/SB9341582631657066.htm)
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