Chapter 6: Global News and Information Flow in the Internet Age

Introduction
- The expression "internet age" can be used to refer or even describe the era we are living in
- Nowadays, the Internet is available to hundreds of millions of people around the world, who can use it for both personal and professional reasons
- The Internet is mostly used to get news, information, and entertainment, making the process of getting information active rather than passive as it was the case with most traditional and conventional means of entertainment, information, and communication
- The internet is not accessible to everyone everywhere since the world is still facing a strong digital divide
- The development of mobile technologies along with the one of the Internet let us predict that future consumption of information will be more based on this digital medium rather than on traditional media
- Mass media producers are faced with the information consumers' needs for specialized and varied and with the following question:
"Do you just glue on the Internet the paper-and-ink version of the traditional newspaper or magazine, or do you go beyond that in view of the versatility of this revolutionary medium and the unique information needs of the online consumer ?"

I. Origin and Early History of News Agencies
At the beginning of the 19th century, newspaper didn't have the technical and financial means to "gather and transmit news from far-flung areas to satisfy readers' growing demand for news", therefore, the emergence of news agencies appeared as a very effective alternative. News agencies could sell their stories to newspapers and supply a large amount of news, which wouldn't be possible to do for simple newspapers.

1. Agence France-Presse (AFP)
- Created in 1835 during the emergence of the "cheap press" in France by Charles-Louis Havas, the AFP is the oldest news agency, and is part of today's four major Western international news agencies
- Known at its beginning as the Havas Agency, this news agency expanded by hiring more and more correspondents across Europe and by using the "newly invented telegraph for faster delivery news"
- As a result, in 1860, the AFP was reporting news from all over Europe, and most European newspapers had a subscription to this agency
- Purchased by the French government in 1940 to set up a propaganda office, and taken by Nazi Germany in 1944, it became officially independent in 1957, date when it got its current name, Agence France-Presse
2. Associated Press (AP)
- The AP is the result of the initiative of 10 men representing six New York City newspapers in 1848 that wanted to collect international news
- The AP expanded very rapidly: by the mid 1890's, 700 newspaper had susbcribed to it

3. Reuters
- In 1851, Paul Julius Reuters, a German-born immigrant opened an office in London that started by transmitting "stock quotations between London and Paris using the first undersea cable"
- Reuters grew until it had reporters located in Asia, South Africa, and Australia by 1861
- In 1874, the Reuters news agency established its presence in the Far East and in South America
- The agency that developed as a family concern became a private company in 1915

4. United Press International (UPI)
- Established in 1907 as the United Press Association because its founder, Scripps, believed that there should be no restriction on who could by news from a news agency
- The name of the agency changed to United Press International in May 1958, when the agency merged with the International News Service and the International News Photos
- The UPI was different from the other news agencies by challenging the arrangements and exclusivenesses that existed among the other news agencies
- First sold in 1982, the UPI had to overcome two bankruptcies and had five different owners since then

5. ITAR-TASS
- The Information Telegraph Agency of Russia is another of the world's largest news agencies, and is the successor of the Soviet TASS agency that was born in 1904
- The agency has the status of "state central information agency" in Russia

II. International News Agencies Today
News agencies today have the possibility to transmit up to 10000 words per minute (contrary to the 60 words per minute in the 1950's) thanks to the development of communication technologies such as: telephone, radio, cable, satellite phone, and the Internet among others
1. Associated Press (AP)
- The stated mission of this non-profit-cooperative is to "provide factual coverage of news to all parts of the globe"
- The AP serves: 1700 US daily, weekly, non-English, and college newspapers; 5000 radio and television stations in the US, and 8500 newspapers, radio and television subscribers in other 121 countries
- It sends about 20 million words and 1000 photos per day to its worldwide subscribers
- It serves as a source of news, photos, graphics, audio and video for more than 1 billion people every day
- AP's information can be available in English, French, Spanish, German and Dutch
- To respond to its online consumers need in specific fields, the AP added to its staff reporters specialized in: business, technology, sports, entertainment, health, and science; and created a new web-based unit called AP Digital
- The agency also offers audio and video services, and short message services (SMS)

2. United Press International (UPI)
- The UPI presents itself as a "leading supplier in knowledge-based" information products on the Internet
- Its "products" are "designed to meet the appetite of today's Internet clients for on-demand news, analysis, expert advisories and guidance, investigative pieces, and practical intelligence"
- UPI provides up-to-date information for readers who want concise formats (100 to 200 words)
- "UPI Perspectives" provides readers with issue-focused reports required to make informed business or policy decisions
- "UPI Science Reports" provides readers with daily updates on topics related to science, technology, and health
- "UPI Newspictures" permits to purchase pictures related to news, entertainment, sports, Washington (speeches, meetings...), lifestyle, and culture
- Clients of the UPI include: print publications, websites, multimedia companies, corporations, governments, and academic and policy institutions
- They offer information in English, Arabic and Spanish

3. Reuters
- Reuters focuses more on providing global financial markets with financial information (real-time financial data; collective investment data; numerical, textual, historical, and graphical databases)
- Reuters claims to be the world's largest international multimedia news agency
- News organizations in 157 countries subscribed directly or indirectly to Reuters
- Its news are available in English, Spanish, and Portuguese, and widely uses the Internet to deliver information

4. Agence France Presse (AFP)
- The AFP is the third largest news agency, and its headquarters are in Paris
- The AFP provides general, economic, and sports news in English, French, German, Spanish, Portuguese, and Arabic (2 million words per day)
- Its subscribers include: the new and traditional media, businesses, universities, embassies, institutions, and public offices
- It has a very appreciated photo service and it offers a variety of online services

5. ITAR-TASS and Interfax
- The ITAR-TASS news agency always struggled to be viewed as an independent, objective and reliable source of information because of its heritage, and faces a stiff competition with another Russian news agency, Interfax
- Interfax is generally considered as most reliable and credible than ITAR-TASS

III. Supplemental News Agencies
- Supplemental news agencies emerged with the willingness of some reporters to write investigative stories with is impossible to their minds with the already established traditional services who produce mass marketed news
- Major supplemental services in the US: New York Times News Services, Los Angeles Times-Washington Post News Service, and Dow Jones Newswires

IV. Broadcast News Services
- The two dominant video news agencies today are: Reuters and Associated Press Television News (APTN)

Advertising Design Presentation

Chapter 11: Global Communication and Propaganda

Introduction

- Propaganda is the oldest term associated with global communication and became more and more important (even dangerous for some) as communication technologies developed

- First definition given: “propaganda is the use of communication channels, through known persuasive or manipulative techniques, in an attempt to shape or alter the public opinion”

- The historical/traditional perception of what is propaganda is closely linked with the eras of Hitler, Stalin and Mussolini

- Another definition for propaganda: “the use of highly persuasive messages that are designed to support public policies, nurture feelings of patriotism, or just convince us that certain activities, situations, or products will serve our best interest if engaged in, consumed or embraced”

- There is no simple definition for the term propaganda, and it is not always easy to identify its use

- The purpose of propaganda is to persuade and convert by using intentionally selective and biased information

I. Origins of Propaganda

1. The term propaganda started to refer to communication media in the 20^th century only, before that, it had to do with the condemnations of clandestine organizations that attempted to undermine or influence public affairs

2. Propaganda carries a strong negative connotation because the ones that exerted it believed that the “ends justify the means”

3. Lippmann (1922) and Lasswell (1927) are the pioneers in the study of propaganda techniques. Lasswell even detailed how exactly the manipulation of propaganda should be implemented.

II. Seeking a Definition

1. There are different points of view and definitions to propaganda, but all agree that propaganda is “a phenomenon of public discourse guidance or coercion that is not always immediately recognized as harmful by everyone”

2. With nowadays communication technologies, propaganda can be spread through movies, comics, internet, television, radio, advertising, and everyday news media coverage

III. Propaganda and Public Relations

1. The author considers that modern day synonyms to propaganda can be: public relations, publicity, marketing, and advertising

2. The author gives a series of examples that could be perceived as propaganda

IV. Public Diplomacy

1. Is related to government communication campaigns and is viewed as a “truthful propaganda”

2. Gullion’s definition of public diplomacy: “to interact with groups, people, and cultures beyond national borders, influencing the way groups and people in other countries think about foreign affairs, react to our policies, and affect the policies of their respective governments”

3. The main objective of public diplomacy is to inform and influence public opinion internationally, or in other words: “win the international public minds and hearts”

4. In a word, public diplomacy involves monitoring public opinion and engaging in dialogues with international audiences

V. Research on Persuasion

1. Research on propaganda started at the end of World War One and its aim was to understand the effect of mass media propaganda upon populations subjected to it

2. There are two main trends in propaganda, one sided messages and two sided messages

a. One sided messages offer arguments in favor of the perspective offered, and are more effective to reinforce an already held position, and is more effective on less educated populations

b. Two sided messages offer the arguments of both sides, are more effective when a perspective will be exposed to counterarguments later, and is more effective on better educated people

c. Both one sided and two sided messages are less effective in enhancing attitude change if the subject has a great knowledge about the subject

d. Prolonged and repeated exposure to specific forms of propaganda might have a marked effect on basic core values held by individuals

3. Three main theories about propaganda appeared from the conducted researches

a. Schramm’s silver bullet model: a fatalist theory that was later relegated to the status of folk belief, suggested that the media has a powerful and direct effect on the public (it uses the metaphor of a bullet that hits everyone) and that media messages can “produce phenomenal changes and essentially get us to do whatever in whishes”

b. Gerbner’s mean world syndrome (that is part of his cultivation theory): argues that heavy television viewing and the violence that is portrayed gives people a sense of insecurity and vulnerability

c. Herman and Chomsky consider that the ultimate media purpose is to divert the public attention away from important political issues by promoting mindless entertainment

4. Research also helped theorize notions such as agenda setting (the media doesn’t tell us what to think, but what to think about), and gatekeeping (decision that concern which stories are going to be covered by the media and to what extend)

VI. Wartime Propaganda

1. Lasswell identified four main objectives of propaganda during wartime (especially World War Two)

a. mobilize hatred of the enemy

b. preserve friendship allies

c. procure the cooperation of neutral nations

d. demoralize the enemy

2. The authors provides examples of the use of propaganda by Nazi-Germany and the US and UK, particularly through persuasive documentaries and films that we addressed to the general public and to the military troops

VII. Strategies of Propaganda

The Institute for Propaganda identified in 1937 the seven most frequent propaganda strategies

1. Name calling: the use of labels to project an idea in a favorable or unfavorable way (ex. Axis of evil)

2. Glittering Generality: the tendency to associate an issue or an image with a noble or virtuous term, to arouse both faith and respect in listeners or readers (ex. Freedom, Peace, New World Order)

3. Image Transfer: happens when one takes the power, respect, and good reputation of an existing entity or concept and tries to share these positive qualities through associating them with a product, group, individual, position, or program (often happens in advertising)

4. Testimonials: happens when a distinguished or recognized but highly unpopular person is used to cast a product, individual, group, position, or program, in either a positive or negative light

5. Plain Folks (Regular Guy): happens when the communicator wishes to convince others that his /her ideas or he/she are good or valid since they are like everyone else, just like ordinary people

6. Card Staking: occurs when a presentation uses a selection of facts and distortions, elucidations and confusions, and both logical and illogical statements. It is the most difficult propaganda technique to detect.

7. Bandwagon Approach: uses the idea that “everybody is doing it”, so individuals are encouraged to join or follow the crowd. This technique usually appeals to feelings of loyalty and nationalism on people.

VIII. Modern Use of Propaganda

1. The periods of WWII and Cold War witnessed governmental efforts to produce propaganda

2. Propaganda extensively uses media channels

IX. Terrorism and Propaganda

1. When engaged by governments: state terrorism

2. When emanates from a nongovernmental group: non state terrorism

X. Addressing Terrorism: illustrates how terrorism is an example of propaganda

An ad from the campaign to convince American Women

that they could emancipate themselves by smoking Lucky Strike cigarettes

Assignment 3

Negroponte’s initiative could definitely be a way to, if not bridge the digital divide, at least considerably decrease it. Moreover, as we discussed in class last time, communication technologies without knowledge is not really effective, nor very meaningful. Indeed, the first priority to cope with divides (digital, structure and knowledge divides among others) is to start by providing knowledge to those who cannot access to it. In a word, since “the project is an educational one rather than a laptop one”, bridging the digital divide using Negroponte’s incentive can be a way to include everyone into our new and still elitist knowledge society.

Chapter 4: The Transnational Media Corporation and the Economics of Global Competition

Introduction:

- It is important to make a distinction between the Transnational Media Corporations (TNMCs) and other Transnational Corporations (TNCs); indeed, the principal commodity sold by TNMCs, the “most powerful economic force for global media today”, are information and entertainment

- TNMCs are the perfect frameworks for international free market (and, consequently for a free flow of information)

I. The Transnational Media Corporations – The Myths around TNMCs

1. Contrary to some common beliefs, TNMC don’t operate in all the world’s markets, but in preferred ones, and especially in home markets

2. TNMCs are not monolithic, in the sense that they are rigid and inflexible organizations with a predefined and unchangeable corporate culture; on the contrary most of them are the reflection of the individuals that developed and organized them

II. The Purpose of Global Media Strategy

1. Most of the major transnational companies didn’t have a pre-established strategy to grow internationally

2. As companies get involved in complex and in international operations, there is a need for a global strategy

3. As a result, if companies become major transnational corporations, it is more due to the fact that they went to a gradual process of evolution that because they established some sort of predefined strategy

III. The Globalization of Markets

1. The rules of free market trade

a. The free market capitalism is the only economic system operating in the world today, and it pushes companies to create “new and innovative products and services”

b. In the context of the free market capitalism, the private sector is viewed as the “primary engine of growth”

c. The rules of the free market trade extend internationally (even if some countries stay reluctant to this idea and try to protect their economies or cultural identity), and respond to the principles of deregulation and privatization

2. Foreign direct investment (FDI)

a. FDI refers to the ownership of a company in a foreign country. The main reasons behind the decision of engaging in a FDI concern profitability and potential for future growth

b. Proprietary and physical assets: TNCs may invest abroad to obtain proprietary assets, natural resources, or even workers with specialized expertise

c. Foreign market penetration: FDI enables TNCs to enter easily existing or developing foreign markets and serve them their products and services directly

d. Production and distribution efficiencies: FDI becomes interesting for TNCs in countries where low labor cost, tax relief, and technology infrastructure represent a significant advantage (few cost but greater efficiency or productivity)

e. Overcoming regulatory barriers to entry: by using FDI, TNCs can enter markets that respond to protectionist policies and circumvent their regulatory barriers (tariffs and import quotas usually)

f. Empire building: TNMCs owners and CEOs engaged in a competition where each has to prove that he/she can engage in huge risks and ventures and makes his/her company grow bigger everyday

3. The risks associated with FDI

a. TNCs may be subjected to: the laws and regulations of the host country (labor conditions and wages requirements), the host country’s politics and political stability, the countries business plan (taxes, currencies convertibility…)

b. As a result, according to Dymsza, “FDI can occur only if the host country is perceived to be politically stable, provides sufficient economic investment opportunities, and has business regulations that are considered reasonable”

IV. Transnational Media Ownership

- TNMCs take advantage of today’s deregulatory and privatization trends to make large combinations (through mergers, acquisitions and strategic alliances) to “achieve increased market share, to diversify product line, and to create greater efficiency of operation”

1. Mergers, acquisitions, and strategic alliances

a. Mergers: two companies are combined into one company (without exchange of cash)

b. Acquisitions: one company purchases another company to add or enhance the productive capacity (with exchange of cash)

c. Strategic alliance: is a business relationship in which two or more companies work to achieve a collective advantage (strategic alliances may take different forms depending on the needs and goals of the concerned companies)

2. When mergers and acquisitions fail: the four main reasons

a. The lack of compelling strategic rationale: the companies have unrealistic expectations and no real strategic plan to follow after the merging

b. Failure to perform due diligence: the objectives of the merging won’t be achieved because the companies failed to perform due diligence

c. Post-merger planning and integration failures: no effective plan for combining similar divisions of both companies, creates friction and impedes synergy

d. Financing and the problem of excessive debt: companies tend to make loans that they may not be able to pay, which destabilizes the new merged company

V. Media and Global Finance

(The industry of business media and telecommunications is characterized by high startup costs and high risk)

1. The role of global capital markets

a. Definition: “a global capital market brings together those companies and individuals who want to invest money and those who want to borrow it”

b. Give advantages to borrowers and to investors (there is a wider range of investing opportunities in the global capital markets), and is not restricted to one country as it for domestic capital markets

c. The intermediaries between borrowers and investors are financial service groups such as banks, or investment companies

2. Capital market loans: might be either equity loans (shares of stock) or debt loans (bonds)

3. Debt financing

a. To invest in new product development, TNMCs usually finance their project ventures by borrowing money

b. These can either be short term loans (that meet immediate cash requirements), or long term loans

c. However, too much debt can destabilize and jeopardize the organization

d. Example: Rupert Mudoch’s borrow-and-buy formula for grow

VI. Business and Planning Strategies

1. The importance of strategic planning

a. As the media industry grows, staying competitive in the market is increasingly difficult

b. Strategic planning involves managerial decisions and actions that determine the long-term performance of the companies

2. Understanding core competency

a. When a company has core competency, it means that it is able to do something especially well compared to other companies

b. Highly successful companies are supposed to have specialized production processes, and brand recognition among other characteristics

c. Example of companies with core competency: Cisco systems

3. Vertical integration (and cross media ownership)

a. Vertical integration enables a company to control most of all operational phases and allows large-sized companies to be more efficient and creative; it is a common growth strategy

b. Most TNMCs engage in cross-media ownership and own a combination of news, entertainment and enhanced information services

c. Example: Time Warner Inc.

4. Broadband communication

a. The digitalization of the media and information technologies erased the traditional boundaries that existed between the media and the telecommunications

b. Broadband communication refers therefore to “the ability to distribute multichannel information and entertainment services to the home”

c. An important strategy for TNMCs that implies broadband communication is to own both software content and means of distribution to the home

d. As a result companies are believed to increasingly rely on VOIP (voice-over internet protocol) and internet telephony

VII. Transnational Media and the Marketplace of Ideas

1. Transnational media and economic consolidation

a. Economic concentration refers to the number of firms that dominate a market

b. Media concentration can either be viewed as a “single industry concentration” (Microsoft), or as a market dominated by “cross-media ownerships” (Viacom Inc.)

2. The deregulation paradox

a. The main objective of deregulation is encourage competition among firms, and therefore their efficiency

b. But in reality there is little competition because of consolidations among TNMCs

c. This lack of competition is due more to the simple fact that some TNMCs are market leaders than to an anticompetitive behavior

3. The marketplace of ideas

a. Many writers argue that “a small set of dominant media corporations exercises a disproportionate effect over the marketplace of ideas” creating as a major issue the one of influence (ideas, information, culture…)

b. Even some think that TNMCs should be treated differently than other TNCs because of their power in influencing the public sphere

c. Others argue that “media diversity doesn’t necessarily translate into higher quality of content” (gossip journalism, sensationalism, trash journalism developed instead)

4. Global competition and the diffusion of authority

a. TNMCs face today an increasingly deregulated and privatized world of business

b. Neither the company nor a person takes full responsibility for the actions of the senior management

c. Some TNMCs tend to get more and more profits and cross the line between journalism and entertainment

d. The ability of TNMCs to influence people’s mind through media is the major reason why many want TNMCs to have strong business ethics

5. TNMCs and the nation-states

a. All the critiques made to TNMCs become even more crucial at the international level

b. Many host nations are confronted to a dilemma: jobs, investments, technology resources versus cultural trespass, privacy invasion, or challenges to political sovereignty for example

c. Mutual cooperation and respect is therefore required between TNMCs and host nations since they have a shared responsibility to “create a system of globalization that is both desirable and sustainable”