Over at Cato@Liberty, I’ve got a post making the slightly obvious point that Digg is a microcosm of the Internet as a whole. Digg, like the Internet as a whole, is an automated and decentralized information-processing system. And just as Digg ultimately faced a choice between allowing the AACS key to be on the site or shutting the site down, we face the same basic choice as a society: unless we want to shut down the Internet (or radically redesign it, which could amount to the same thing) we’ve got little choice but to allow some level of illicit content to be traded.

This seems to me to be a nice illustration of a point that I’ve often tried to make about the network neutrality debate, because it seems to me that the telcos face a similar challenge with regard to their management of their networks. Many of the horror stories pro-regulatory types tell about a post-neutrality future assume that the telcos have fine-grained control over what kind of content flows over their networks. That they’re censor liberal blogs, or shut down particular categories of new innovative applications, or sign exclusive deals where (say) one sports website is the official sports website, and all the others are blocked or degraded.

But an ISP attempting to implement such a fine-grained, coercive strategy on a user base numbering in the millions is likely to find their users reacting in creative ways that confound the scheme. Tech-savvy users will immediately start running services on non-standard ports or tunneling their connections over encrypted links. They’ll find ways to camouflage one category of traffic as another, such as making a VoIP session look like a World of Warcraft game. Soon you’d start seeing user-friendly applications available for download to allow moderately tech-savvy users to use the same tricks. And applications developers will start integrating these tricks into their applications, so that the application will automatically detect whose network they’re on and use the appropriate countermeasure.

(Geeky aside: it’s possible to imagine open source networking libraries that do this automatically and transparently, presenting an API that allows the application developer pretend he’s on a normal, open network. Indeed, I bet you’d end up with a situation similar to the situation we saw with open source instant messaging libraries a couple years ago: the telco would introduce new routing polices in an effort to break unauthorized applications. The creators of the circumvention libraries would find a new work-around, publish it, and all the application developers would have to do would be to download the new library and recompile.)

Of course, the telcos could always go for the nuclear option and block all traffic it can’t validate as “approved,” effectively converting the open network into a closed one But that would come at a very high price, because there’s a long tail of content and along tail of applications. An Internet that only does the things on your ISP’s approved list is dramatically less useful than an open Internet, just as Digg would be a dramatically less successful site if it only featured stories that had been pre-vetted by the telco’s employees.

So while telcos may have formal control over their pipes, they probably have less practical control over Internet content than is generally assumed. An open network is much more useful to users (and will therefore generate more revenue) than a closed one, but once you have an open network it’s very hard to limit how it’s used.

This is just a quick follow-up to an entry I posted late last year about Clear Channel’s possible divestiture of a significant number of its radio stations across America. Now we’re getting details and the sell-off is ready to begin. On Wednesday, Clear Channel said it would be selling 362 of its 1,150 radio stations as the company continues to shed assets and go private. Clear Channel hopes to fetch roughly $820 million from the sale of these radio stations. The company is also selling off TV assets. All total, the company expects to divest itself of almost $1.9 billion worth of properties.

As I’ve said many times before in this ongoing “media deconsolidation series,” this is just another sign of how dynamic the media marketplace is. Despite all the hand-wringing we’ve seen over media consolidation in recent years, critics fail to realize that this industry has continued to rapidly evolve, expand and innovate regardless of the ebbs and flows of media ownership patterns. A few years ago, mergers and acquisitions were all the rage. Today, however, a “back-to-basics” strategy is back in vogue that is seeing operators shed assets to figure out how to make customers happy while also weathering the storm of technological changes reshaping the media landscape. In other words, markets work!

But don’t expect the media Chicken Littles to say a peep about any of this. They’re always too busy concocting their next horror story about how the media sky is about to fall on our heads. This week, it’s the Rupert Murdoch offer for the Wall Street Journal. Who knows what it will be tomorrow, but there’s always something they want to complain about. Meanwhile, the rest of us are struggling to deal with the avalanche of media options that we’re showered with every second of our lives.

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Say what you want about Rupert Murdoch, but the man certainly knows how to make news. His bid for Dow Jones two days ago – despite being initially rejected by Dow Jones’ controlling family — is still reverberating through media, financial, and political circles.

From the start, the proposed deal came under a hail of criticism. That is in itself unsurprising. Murdoch is so unpopular that any acquisition would be roundly condemned. If he tried to buy a ham sandwich for lunch that would be condemned.

But isn’t this a debate over media concentration, not just Murdoch? Anti-media consolidation activists, of course, have trotted out all the usual concentration-of-power arguments. The media market has been called a monopoly, an oligopoly, and every other type of poly that can be found in Greek dictionaries. But these arguments have sounded even more hollow than usual. There’s little overlap between Dow Jones and Murdoch’s News Corporation. Dow Jones owns newspapers – mostly small ones and one really big one – but has no broadcast holdings. News Corporation owns TV stations but only one newspaper in the U.S.

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Just a Number

by on May 3, 2007 · 26 comments

I mostly agree with Tom Lee’s point here, but I think he’s being a little bit unfair in his characterization of Ed Felten’s post on the AACS/Digg incident. Tom says:

I’m no fan of DRM, and I think the AACS LA’s actions are pointless and stupid. But Doctorow and Felten are being disingenuous — they’re simply too smart not to see the problem with this argument. Namely, that any type of data, sampled at a chosen level of precision, can be represented as a number. Consequently, if you believe that one or more types of information deserve legal protection — as Felten seems to, when he refers to songs & movies — then the argument that “it’s just a number!” becomes ridiculous.

Sixteen bytes is probably too short to merit a copyright. But that’s not the right that the AACS LA is asserting: they’re calling the code a “circumvention device” under the DMCA. And even if you don’t recognize the DMCA’s validity, there are other forms of intellectual property protection that may apply — there are laws related to trade secrets, for example. If you just think about it a little, it should be obvious that even a very short piece of data can enjoy some kinds of legal protection. Sixteen bytes is more that enough room to encode the words “Coca-Cola”, after all.

The thing is, geeks like to pretend that the legal system is some sort of Rube Goldberg contraption, easily foiled by their unparalleled cleverness. Sadly, this isn’t the case. All the IANAL-prefixed prattling on Slashdot about quick & easy ways to make yourself legally bulletproof when the cops/MPAA/interpol come knocking are little more than wishful thinking. It’s like holding your finger an inch from your sibling’s face and yelling, “I’m not touching you!” over and over. Your parents weren’t dumb enough to fall for that, and neither is the legal system.

He’s right about the Rube Goldberg thing. As a matter of law, the fact that something is “just a number” won’t help you if you’re guilty of violating copyright law. Moreover, the position that anything that’s “just a number” should never be restricted is obviously ridiculous. I’m perfectly comfortable with restricting (say) numbers that are JPEG representations of child pornography or PDFs of sealed grand jury testimony. Clearly some “numbers” ought to be legally restricted.

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So nmuch for the ‘new and improved’ GPL, by James V. DeLong, from CNET:

In the month since the release of the third draft of the Free Software Foundation’s GPLv3, much of the open-source community has been oddly incommunicado.

Slashdot and GrokLaw, the major homes for the community’s individual members, bulge with posts. But reaction from the corporate wing of the movement–starting with its semi-official spokesman, the Linux Foundation–is silence.

Why the companies hit the mute button just when one would expect a coordinated chorus of huzzahs is a matter for speculation, but here is a hypothesis: Maybe because after two years of drafting, redrafting and re-re-redrafting, the product finally went to the corporate general counsels, and these folks promptly went ballistic over the ambiguities, uncertainties and risks.

Here are two new data points in a discussion Jerry and I had back in September: will the Internet kill TV, and if so what will Internet-based TV look like?

First, Matthew Ingrahm points out Prom Queen a web-only soap opera that’s released in daily 90-second segments and has apparently racked up 5 million total viewers over the last month.

Second, Rob Hyndman points to the TEDTalks video series. As Hyndman points out, there is a long tail of video content out there: shows that individually couldn’t attract a large enough audience to secure a spot on a traditional cable lineup but that collectively could generate significant traffic. As the Internet eliminates the artificial bottlenecks now imposed by the need to organize our video watching into “channels,” the number of different things people watch is poised to explode.

My guess is that our children will have as much trouble imagining a world with only 100 channels as we do imagining a world with only 3. And there’s a good chance our grandchildren won’t even know what a “channel” is.

Predictions about life in the year 2000, from the year 1900. Including:

On Package Delivery .

.. Pneumatic tubes, instead of store wagons, will deliver packages and bundles. These tubes will collect, deliver and transport mail over certain distances, perhaps for hundreds of miles. They will at first connect with the private houses of the wealthy; then with all homes. Great business establishments will extend them to stations, similar to our branch post-offices of today, whence fast automobile vehicles will distribute purchases from house to house.

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Code Is Speech

by on May 3, 2007 · 4 comments

Or in this case, 128-bit numbers are songs:

The comment period on Department of Homeland Security regulations implementing the REAL ID Act ends early next week. A broad coalition of groups has put together a Web page urging people to submit their comments. The page has instructions for commenting, a quite helpful thing given how arcane the regulatory process is.

Feel free to comment — good, bad, or indifferent – on the regs. My views are known, but the Department of Homeland Security doesn’t know yours.

Those who care about free speech should consider why government taxes are higher on communications than on other goods and services. This new study by The Heartland Institute and the Beacon Hill Institute is eye opening.

Here’s a paragraph from the study:

According to the Tax Foundation, the national average retail sales tax rate (combining local, county, and state sales taxes, weighted by personal income) is 6.61 percent. Taxes and fees on cable TV and telephone subscribers average 13.52 percent, twice as high. In other words, telephone calls and cable services are taxed at two times the rate as clothing, sporting goods, and other household products.