Download JFC`s Lecture Outline

Introducing Electronic Media
The Information Superhighway

What It Means -- high-capacity, high-speed data links both national and global
in scope, and the computer technology and other hardware that runs it all.
The Information Superhighway
 Official name -- in this country: National Information Infrastructure (NII) from
the 1993 Clinton administration report.
o Al Gore claims credit for info highway (1978)
 Physically, it's really laid over what was originally the telephone system -- still,
the technology remains essentially the same.
 Convergence -- the integration of what had previously been discrete and
separate communications systems.
o Those systems are broadcast, cable, telephony, computers, computer
networks.
o The concept includes industry convergence, hardware convergence,
content convergence
 Seamless and Transparent -- the goal of all networks -- ideally, it will be both
seamless and transparent.
o Seamless: without interruption.
o Transparent: the various components, functions, and processes of the
network are not apparent to the user.
 Multimedia -- much of what we see, hear, and maybe experience in other
ways is in the form of multimedia. The combination of more than one
medium: text, data, audio, video, graphics, animation.
o It's not multimedia unless at least two are integrated -- linked,
synchronized, and commonly controlled.
o Can be interactive or non-interactive.
The Players: Broadcast
 Broadcast -- Traditional radio and television networks seem to be at the
greatest risk now.
o They once had 100% of the viewers and listeners, now they have less
than a third -- not only affects the networks, but their affiliates.
o Networks once charged affiliates for programming, now they pay them
to carry their feed.
 Networks will survive, at least for a while, as broadbased programmers, the
avenue for people who don't want cable, and as critical mass for major
advertising
 But they are already maximizing their opportunities and diversifying.
o They will continue with general interest format, but also provide niche
channels.
o Plus, they already operate their own cable channels and host web
pages that have multimedia content.


The outlook for local TV broadcasters is uncertain with the rise of other
satellite video services and technology.
o Also -- HDTV is here -- much more of a financial burden on stations
than on cable networks.
Who knows what the picture is with radio?
o Digital radio is on the horizon.
o The question is: is there any other method of delivery that makes
sense given the circumstances of radio-listening?
Broadcast Trends
 Consolidation -- owning several stations in the same market, each targeting
different audiences, or owning many stations spread across many markets.
o That's been the trend since ownership rules were drastically relaxed in
1996.
o Ownership by other large media firms and content providers and an
increase in the number and types of stations that can be owned.
 Diversification -- local broadcasters may also offer more program and data
services as they are able to make more efficient use of their 6 Mhz of HDTV
bandwidth.
Broadcast’s Commitments
 Localism -- simple, local stations know their markets and serve their special
needs better than nationally-based services do.
o There used to be must-carry rules for cable -- they were relaxed -some cable operators dropped local stations and suffered, so now they
just do, even though they aren't required.
 Universal Access -- part of the Federal Organizing Principles -- guarantees
certain services to all Americans:
o Phones
o Utilities
o Interstate highway system
o Over-the-air broadcasting
o And now wireless networks
The Players: Cable
 Cable -- at this point, about 88% of TV households get their TV signal from
cable, satellite, etc., rather than broadcast.
o Cable passes 95 of 110 million TV households.
o But satellite providers have about 31% of the multichannel market
o Verizon and AT&T have about 1.5 million customers between them.
 But there are other services available:
o Video-on-demand -- interactive service that allows any kind of
programming to be ordered at any time.
 There's also near-video-on-demand.
o Other services -- Internet access and even phone service.

Cable's advantage on the information superhighway is its programming
experience and its high bandwidth into people's homes.
o It's a major player on the info superhighway.
The Players: Telephone
 For years, all the telcos did was deliver:
o POTS -- Plain Old Telephone Service. Later, they began offering
commercial data transmission services and commercial audio and
video transmissions.
 The Modified Final Judgment really blew apart the industry, creating all kinds
of new competition for new services, and then in 1992, the FCC allowed
telcos to get into cable in their own service areas, which created another new
round of strange partnerships.
 The various phone companies are the other major players on the info
superhighway.
o Their service extends into almost 100% of homes and they have
unparalleled switching experience.
o ADSL, which works over 2X wire, already exceeds cable modem
speeds in some places -- maybe fiber optics to homes someday.
The Players: Computers
 Computers -- the information superhighway simply wouldn't be there if not for
computers.
o Much of the hardware of the network consists of computers or
computer-controlled devices.
o All instructions and protocols are written on computers.
o In terms of television, your cable converter box is really a computer.
 The video servers for on-demand are computers.
 But now you can also receive audio and video programming over your
computer, as well as download whole songs, CDs, and midi files, as well as
graphics and text.
 Also, most post-production work and quite a bit of actual production
(especially in the music business) is done on computers.
The Players: Newspapers
 Newspapers -- virtually all major newspaper and many others offer websites,
on-line databases, and even audio and video clips and other value-added
content.
o Not surprising since many are owned by giant media corporations that
own many other kinds of media outlets.
Essential Terms: Common Carriers
 Common Carriers vs. Electronic Mass Media -- who has responsibility for the
content?
o Phone companies do not, so they don't have to worry about legal
issues.


o They have traditionally been monopolies in the areas they serve, so
they have guaranteed business, but the government regulates their
rates.
o Also, customers can demand access.
Broadcasters are legally liable for their content both in terms of violating
community norms and in terms of slander and libel.
o However, they are not rate-regulated, and they are protected by
constitutional guarantees of free speech.
o Obscenity and Indecency
Broadcasting -- legal definition -- send out sound and pictures by means of
radio waves through space for general reception by the public.
o Other services use the airwaves, but their transmissions are not
intended for the general public.
Essential Terms: Transmissions
 Point-to-Point -- from a source to one intended recipient.
 Point-to-Multipoint -- from a source to more than one intended recipient
Essential Terms: Hybrid Services
 Hybrid Services -- services that have characteristics of both common carriers
and broadcasters or common carriers and computer networks.
 Cable is the best and earliest example: act like common carriers with local
monopolies and no control over content.
o But they carry broadcast programs and sometimes originate
programming.
o So the government regulates them as a hybrid: their rates are
regulated, but they claim free speech protection, which the courts have
upheld.
 Another example is the wireless cell phone network.
o 88% of Americans own some type of cell phone
o About 61% own a smart phone
o Primarily for voice conversations, but many text more than talk, and
there is increasing web use (54%).
o 75% of all US cell phone users send text messages.
o Billions of text messages a month.
Essential Terms: DBS
 Direct Broadcast Satellite -- classifies as non-broadcast because it is
technically point-to-multipoint service -- reaches only paying subscribers.
What about the Public?
 What Does the Public Want? -- everything they can get at the lowest cost,
and they don't care how it arrives.