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BitStream Newsletter

MultiMediator's BitStream - ISSUE #18
[-- April 12, 2000 --]

THIS ISSUE'S STREAM:

[-- NEWSPEAK: MULTIMEDIA INDUSTRY NEWS --]
Bell Canada Invests in High Speed Internet Access
Thomson Acquires a Content Mother Lode
Broadcasters Call for Changes to Copyright Act
E-TV: The Integration of Culture and Commerce
North America's First ITV Course Set for Canada
Bell Mobility and Scotiabank Announce Wireless Deal Wireless Talks for Rogers, AT&T and GoAmerica
High Tech Haven Proposed for Toronto's Waterfront
One Million Canadians Made Purchases Online in '99
Canadian Videogame Developer Scoops Grand Prize
Wondrous Odors Part Two

[-- PLUG: INDUSTRY ANNOUNCEMENTS --]
E-Commerce Opportunities Highlighted in Detroit
IMAT's Advisory Council Wants You
New Media Centre Seeks Executive Director

[-- DIGERATI DATEBOOK: UPCOMING INDUSTRY EVENTS --]
Towards the Digital Media Institute
Is Technology Replacing Storytelling in Film?
Sheridan Open House at Apple Media Centre
Trade Mission to Washington, DC
Nominations for Canadian New Media Awards Close

[-- THE LUDDITE'S LAIR: A SKEPTIC'S VIEW --]
The Gates of Hell

[-- BYTE BACK: LETTER TO THE EDITOR --]


[-- NEWSPEAK: MULTIMEDIA INDUSTRY NEWS --]

Bell Canada Invests in High Speed Internet Access
Bell Canada has announced that it will invest $1.5 billion over three years in order to expand and enhance high speed Internet availability for both residential and business customers. The move will see Bell accelerate its planned high speed access program to reach five million homes, or over 70 percent of its customers, by the end of the year. That figure will rise to over 85 percent by the end of 2002. In addition, in some centers, including Toronto, Bell's optical fibre mesh network will be built using optical cables containing more than 800 fibres, enabling rapid expansion of services that provide up to a gigabit (1000 MBPS) connectivity services for large business customers.
http://www.bell.ca/

Thomson Acquires a Content Mother Lode
Thomson has acquired Dialog's Information Services Division (ISD) for US$275 million. The deal will provide Thomson with access to a broad range of Internet and intranet-based content. Dialog's "nine terabytes, or more than six billion pages, of essential information in business, science, engineering, finance and law" are currently available to more than twenty thousand professional and corporate customers in 120 countries. Dialog will change its name to Bright Station.
http://www.thomcorp.com/

Broadcasters Call for Changes to Copyright Act
The Canadian Association of Broadcasters (CAB) is calling for changes to the Copyright Act that would block any future attempts to resell its content without payment. CAB said it will push for amendments that would prevent Internet companies, such as iCraveTV, from re-broadcasting signals without first negotiating fees with the originating stations. The association is seeking "immediate changes to section 31 of the Copyright Act to explicitly carve on-line media entities out of the definition of retransmitter." (Source: The Financial Post) http://www.cab-acr.ca/

E-TV: The Integration of Culture and Commerce
The Canadian Cable Television Association (CCTA) has called on the government to "encourage the convergence of distribution, programming, new media and e-commerce." The report, entitled E-TV: The Integration of Culture and Commerce, explores the "the economy and its implications for economic growth, consumer choice, competition, Canadian content and the regulated communications industries." Of prime importance in the future will be interactive digital communications, new enterprises arising out of convergence and e-commerce to the home (E- TV), a term denoting the broadband distribution of e- commerce, entertainment and information to the home. The report is available online and includes information supplied by the fine folks at MultiMediator's parent company, MMSG.
http://www.ccta.ca/

North America's First ITV Course Set for Canada
Toronto's FLUX: Media and the Bell Centre for Creative Communications at Toronto's Centennial College have announced an alliance that will result in an educational course focusing on Interactive Television (ITV). The program will apparently be the first of its kind in North America and will encourage students to "experiment with leading-edge technologies in a setting that fosters creative learning and real-world training." ITV, which twins broadcast TV with the Internet, is one of the fastest growing segments of the high-tech field.
http://www.bccc.com/
http://www.fluxability.com/

Bell Mobility and Scotiabank Announce Wireless Deal
Thanks to an agreement between Scotiabank and Bell Mobility, customers with Digital PCS phones will soon be able to check their accounts, pay bills or transfer funds anytime, anywhere. This new service will be delivered using Mobile Browser, a Bell Mobility service enabling users to log onto the Internet from their Digital PCS phones. Customers using the '.com-ready' phones will also have access to discount brokerage information, including stock quotes, alerts, trade confirmations and personal portfolios. http://www.bellmobility.ca/

Wireless Talks for Rogers, AT&T and GoAmerica
An agreement between Rogers, AT&T and GoAmerica would allow customers to browse and fully access the Internet using Rogers AT&T Mobitex network. The nationwide Mobitex network provides users with access to information on standard computers, without the need for phone or cable connections. The triad also hopes to develop Canadian content for Go.Web in Canada. (Source: Canada Internet.com)

High Tech Haven Proposed for Toronto's Waterfront
The Toronto Waterfront Revitalization Task Force has announced plans for the Toronto Waterfront redevelopment that includes a "convergence community that crosses all disciplines of creativity to take advantage of Toronto's unique position in new media, communications, music, biotechnology, software and high technology." Robert Fung, head of the Government of Ontario-appointed task force, told The Globe and Mail that he would like to see a "unified voice for Toronto, a knowledge port with the type of organization, scope and scale that is associated with Hong Kong's CyberPort and Singapore's Intelligent Island." The Globe also quotes a recent PricewaterhouseCoopers study (produced in collaboration with MultiMediator's parent company, MMSG) that estimated that "Toronto could be losing up to $3 billion and about 30,000 jobs because its new media cluster lacks the organization and co- operation needed to properly market itself." And Smart Toronto has estimated that there are 3,100 high-tech companies scattered throughout the Greater Toronto Area, employing about 155,000 workers." (Source: The Globe and Mail)
http://www.city.toronto.on.ca/waterfront/fung_report.htm

One Million Canadians Made Purchases Online in '99
A recent report has found that Canadians spent on average $770 dollars online in 1999. One million Canadians, or nine percent of the country's online population, purchased goods or services online. The IDC, who surveyed Internet users for Ernst & Young, also found that while Canadians currently spend 5 to 6 percent of their retail dollars online and would prefer to shop at Canadian sites, most found sites in the US offered better choices. The top three sites visited by Canadian shoppers are Amazon.com, eBay and Canada's Chapters.ca. The report suggested that Canadian retailers should move quickly to establish an Internet presence in order to limit the current advantage of US retailers. (Source: The Toronto Star)
http://www.eycan.com/

Canadian Videogame Developer Scoops Grand Prize
A family-owned Canadian multimedia company has taken home the Grand Prize, Best Game Design and the Technical Excellence awards for its videogame project, Tread Marks, at the second annual Game Developers Conference Independent Games Festival (IGF). The company, Longbow Digital Arts, is a run by various members of the McNally family from their home base in Providence Bay in Northern Ontario. The game is an "off-road tank racing and combat game featuring 20 different tank models, a destroyable landscape and 23 different weapons." (Source: Spectrum)
http://www.longbowdigitalarts.com/

Wondrous Odors Part Two
Those readers who may have been caught sniffing their monitors in our April Fool's prank (The New World Odor, BitStream #17) may be justifiably reluctant to take this report at face value, but we swear this one is true! Oakland, California-based DigiScents has created iSmell, a "digital smell technology" that it says will bring a sense of smell to your computer. With iSmell, you can enjoy " immersive games, realistic movies, and atmospheric music" or "send e-greetings that smell like chocolate or roses." No, really.
http://www.digiscents.com/

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[-- PLUG: INDUSTRY ANNOUNCEMENTS --]

E-Commerce Opportunities Highlighted in Detroit
The Canadian Consulate General in Detroit is inviting Canadian e-commerce developers to take part in a trade mission. The Canadian Consulate General and the Great Lakes Interactive Association (GLIMA) are organizing this event which will take place from May 16 to 17 and includes a one-day workshop entitled Global E-business 2000. The workshop will feature industry leaders discussing some of the issues companies must consider when developing e- commerce strategies. Registration is US$150 per person. For more information, contact Nicole Hayley at . (Source: SMART Toronto)
http://cvs.silvercube.com/glima/

IMAT's Advisory Council Wants You
The Interactive Multimedia Arts & Technologies association (IMAT) launched its Advisory Council in January 2000. The Advisory Council will bring together industry leaders, leading edge content development companies and fee-for- service companies in Ontario for a monthly forum designed to "deliver high impact business intelligence." Other goals of the Advisory Council include creation of a strong multimedia industry alliance and partnerships, providing strategic business skills to companies, and creating and promoting industry innovation to capture mind share. If your company is interested in participating in IMAT's Advisory Council, please contact IMAT's president, Aurel Langlois, by e-mail at president@imat.ca. http://www.imat.ca/

New Media Centre Seeks Executive Director
The Advisory Committee of the newly established Liberty Village New Media Centre (LVNMC) is seeking an innovative and entrepreneurial individual to fill the position of Executive Director. The Liberty Village New Media Centre will service all of Toronto's new media clusters, and was made possible through an investment of $1M by the Province of Ontario. As the most senior member of the management team, the Executive Director will play a key role in refining and implementing the centre's three-year business plan to support the advancement of the new media sector in Toronto. This person will work with private and public sector stakeholders to increase competitiveness and innovation, attract and retain investment and stimulate job creation in this dynamic industry. Please visit http://www.sto.org/lvnmc/ for a complete job description and more information on this exciting career opportunity.

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[-- DIGERATI DATEBOOK: UPCOMING INDUSTRY EVENTS --]

Towards the Digital Media Institute
April 13 - June 15, 2000 in Toronto, ON
The University of Toronto's Knowledge Media Design Institute, Ryerson Polytechnic University, Sheridan College, and the Canadian Film Centre are presenting a 10- week lecture series: Towards a Digital Media Institute. Speakers will include Paul Hoffert (CulTech Research Centre), Ronald Baecker (University of Toronto), Michael Murphy (Ryerson Polytechnic University), Robin King (Sheridan College), William Buxton (Alias| Wavefront), Wayne Clarkson (Canadian Film Centre) and others and should be of interest to anyone in the digital media industry, including "the technical, cultural, finance, government, and academic sectors." The series is free but those interested in attending are asked to contact dmi.info@utoronto.ca so they can arrange for sufficient refreshments. For further information, live Webcasts, and archives of the sessions, please see the DMI Web site. http://www.rcc.ryerson.ca/dmi/

Is Technology Replacing Storytelling in Film?
April 17, 2000 in Toronto, ON
Join guest speaker William Buxton as he explores whether or not technology is distorting the focus of creative control in filmmaking. Buxton is a designer and researcher specializing in human aspects of technology, human- computer interaction, and technology mediated collaborative work (Telepresence). He is Chief Scientist at Alias| Wavefront Inc., as well as its parent company, Silicon Graphics Inc. and an Associate Professor in the Department of Computer Science at the University of Toronto. For more info, call (416) 216-2160 or surf
http://www.dx.org/.

Sheridan Open House at Apple Media Centre
As mentioned in BitStream #17, the Sheridan College New Media Design's annual industry Open House will take place on May 2, 2000. Please note that the location of the open house is Apple Canada's Media Centre; incorrect information appeared in the previous issue. The Sheridan Open House provides an opportunity for employers, alumni and other program supporters to view the final Web design projects by the graduating class of this post-diploma course. For more info and to RSVP, please e-mail Gillian Chubb at gillian.chubb@sheridanc.on.ca.

Trade Mission to Washington, DC
The World Trade Centre Montreal (WTC Montreal) and Team Canada Inc., through the International Trade Centre of Industry Canada have issued invitations to take part in a trade mission to the World Bank (WB) and the Inter- American Development Bank (IDB) to be held in Washington, DC from May 3 to 5, 2000. The mission will be chaired by Mr. Andre Gladu, Deputy Minister, Canada Economic Development, and will focus on the Telecommunications, Telehealth, Information Technologies and Software sectors. For more information, e-mail aperron@wtcmontreal.com or surf http://www.wtcmontreal.com/. (Source: IMAT)

Nominations for Canadian New Media Awards Close
Nominations have closed for the inaugural Canadian New Media Awards. In all, over 250 nominations were received via the Canadian New Media Awards Web site http://www.multimediator.com/cnma/ with entries from as far away as the Northwest Territories. The awards show and gala reception will be held Thursday, May 18, 2000 at the John Bassett Theatre in Toronto.

An awards show such as this couldn't be possible without help from sponsoring organizations such as newMedia2000. As Canada's leading international event for the multimedia and digital content creation community, newMedia2000 showcases digital technology across all media platforms through an exhibit hall with thousands of cutting-edge products and 130-plus conferences. newMedia2000 takes place May 15 to May 18 at the Metropolitan Toronto Convention Centre. Visit the newMedia2000 Web site for more information: http://www.newmedia.ca/.

Yellow.ca provides cost-effective opportunities for Canadian business to market their companies on the Internet. A proud sponsor of the Canadian New Media Awards, Yellow.ca http://www.yellow.ca/ is Canada's largest interactive business search directory. Featuring multiple search and reverse search capabilities, it's the only Canadian business directory that lets users search by phone, company name, address, postal code, area code, city or province.

Category sponsor SGI Canada (formerly Silicon Graphics) is the world's leader in high-performance computing technology. The company's systems, ranging from desktop workstations and servers to the most powerful supercomputers in the world, deliver advanced computing and 3D visualization capabilities to scientific, engineering, and creative professionals and large enterprises. In addition, SGI creates innovative software for design, Internet, and entertainment applications. SGI Canada http://www.sgi.ca/ is headquartered in Mississauga, Ontario and employs approximately 140 Canadians in seven office locations across the country.

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[-- THE LUDDITE'S LAIR: A SKEPTIC'S VIEW --]

The Gates of Hell

By Hartley Steward hartleysteward@canoemail.com

The temptation must be great for many new media people to come to the defense of Bill Gates. Don't.

The judge was right.... He is the worst sort of businessman. He gives all business a bad name and he is especially unsuitable as a hero for the Internet generation. He does not deserve your adulation or your envy. Pity him, if anything.

Perhaps I am being nostalgic, but I remember the early Internet as a world full of young people ready to change things. Visiting the Web then was almost like dropping in on the idealism of a hippie commune in the Sixties. Without the drugs, mind you.

The notions were mostly naive and even simple-minded sometimes, but they were decent and pure. There was altruism aplenty and a genuine feeling that it was good to share with your fellow man. E-commerce was in its infancy and the early Net-minders dared think it might develop in a generous, ethical and fair fashion.

As I said, sometimes the notions were simple-minded.

The free stuff being offered didn't have a string attached to it, which lead back to a costly bit of necessary software. The advice was more often than not silly and the philosophy more John Lennon than Soren Kierkegaard, but it was free. So what if you could learn how to make a bomb? You were asked to make it only for the best of reasons.

Anyway, I liked that Internet and I especially liked those who dreamed a different future for it.

Bill Gates, for all his posturing, dreamed only of owning it. He presented himself as a nerd and let us believe all he wanted was to be head nerd. He wanted, he claimed, only to show us tomorrow. But he wasn't a nerd at all. He was avaricious and mean. There were no stars in his eyes. They were made of steel.

He was nothing more than another ruthless businessman. And there's hardly anything worse than that.

He may look like the poster boy for the new electronic world, but he is everything the early Internet was against. I have been to the boardrooms and can tell you no one amasses a personal fortune of $109 billion doing God's work. He is a blight on nerd-dom. A black mark on the electronic universe. Call him antichrist.com. You'd be close.

I believe that deep down in their nerdy little hearts, new media people still harbour hopes for a world that cares more for knowledge than money. That's why there is still a lot of free stuff online for the taking and now and then a chat group sounding for all the world like the Hardy Boys planning a new caper.

Bill Gates is not your kind of guy. He's ruined your dreams - mine, too - and he gives you all a bad name. --

Hartley Steward is the former Publisher and CEO of the Toronto Sun. A graduate of Ryerson Polytechnic University (where he studied journalism), Steward has written for numerous "old media" publications, including Maclean's, Toronto Life, The Toronto Star and The Toronto Sun. He was founding publisher of the Calgary Sun and Ottawa Sun and the first publisher of the daily Financial Post. In addition to writing for MultiMediator's BitStream, Steward writes a regular column for the Toronto Sun, which is carried by about a half dozen other papers.

== Obligatory Legal Disclaimer to Appease the Lawyers: The statements and opinions expressed in The Luddite's Lair are those of the author and not of MultiMediator or MMSG. Neither MultiMediator nor MMSG necessarily support or agree with the contents of The Luddite's Lair, in whole or in part. So there.

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[-- BYTE BACK: LETTER TO THE EDITOR --]

[This issue's letter comes from Hugh Stuart, founding executive producer of Sun Media's national Web site, Canoe, who suspects that he was one of those people who bored Hartley Steward when Canoe was launched during Steward's watch. He responds here to Hartley Steward's "Advice for Propeller-Heads" (BitStream #17). - ED.]

Hartley Steward set the trap in his "Advice for Propeller- Heads" column. And I'm taking the bait.

I mean someone has to. While offering a Luddite's view, Hartley's column really seemed to be a rekindling of past battles and perceived slights, a shot at those who championed Canoe, those rude, boring people with their heads up their backsides. So in true Sun style, let's go.

First, the conclusion. Get over it.

Fact is, Canoe is one of the most-trafficked Web portal sites in Canada. Its owners, for whom Steward has enjoyed a distinguished career, now own a valuable asset. If it goes public this year, Canoe's market cap will be in the hundreds of millions of dollars. Or, if owner Quebecor succeeds in its bid for Videotron, Canoe will have been positioned as a key asset in the deal. By those measures, Canoe can only be seen as a stark raving success. Sun Media has won. Canoe has won.

So what's the problem here?

Well, Steward wants revenue. Cold hard profits. Now. And until he sees Canoe spitting out money, he will turn up his collar against the cold wind of changing times, call up a friend (on an analog phone, no doubt), and exchange told-you-so's.

No wonder everyone from Paul Martin, to the Business Council on National Issues, to those talented souls who head south in search of challenging new media work, think this country's economy is heading for the dumpster. This is the time to go on the offensive. The country's getting wired (I should know). Seize the opportunity before someone else does.

As for arrogance, it's not as if today's newspaper barons invented the newspaper business. They can call upon a hundred years of business lessons, some of them painfully learned. Seen a typewriter lately? Hot lead? Afternoon editions? They iterated. So what if interactive media ventures are at times "flopping around" in search of a business model. Big whoop. If Canadians embrace the new media platform in sufficient numbers, the business model will come. So how about cutting Canoe - a relative baby at four - some slack?

By the way, "old media" was just a term. Call it traditional media. Call it real media. Whatever. It was not meant to be hurtful. But it is the newspaper Luddites who have added the word "dinosaur" to their list of perceived slights. Dinosaurs? I feel sorry for the real dinosaurs, because they had no choice but to accept extinction.

Fortunately, newspaper CEOs and their boards are ignoring the Luddites. Look around you. Canoe, Toronto.com, Canada.com, the Globe Information Services sites. They're painstakingly building audiences and revenue. Yes, on the backs of newspaper capital. But they're not out to replace newspapers, but to operate side-by-side with them. They're being defensive ("upstarts threaten our classified revenue") and offensive ("what if we could leverage our job listings across interactive media and print media?") They're sitting pretty if they dare. Their content is like rocket fuel for the interactive media furnace. Their business relationships, brand equity, and capital provide huge strategic advantages.

I think Steward was being a little disingenuous when he lamented the spending of dollars on new media. For the love of Douglas Creighton, didn't the launch of the Toronto Sun out of the ashes of a failed newspaper constitute risk? Steward himself was a popular publisher in tough markets where heavy losses were assumed before profitability. Relatively speaking, new media has been small-risk stuff. No printing presses, no trucks, no newsprint. Just people, marketing, connectivity, content, sweat, and promise.

Having worked in newspapers for more than 15 years before moving to the new media side of the house, there are some things I miss about newspapering. The adrenaline of deadline. The overall teamwork required to produce an edition. A great story. The ego boost of a byline. A paper hot off the press. The feel, the smell. I know a little about where Steward is coming from. I wish every young new media staffer could appreciate that newspapers are organic marvels of process, engineering, and creativity: If it happens at 2:00 a.m., it can be on your breakfast table by 6 a.m. But you can't explain it. You have to have been there.

However, I don't buy the notion that new media needs to walk in the shadow of traditional media. It's different, that's all. It deals in real-time. It's interactive. It gives a home to the voices of thousands of Canadians who would never think to write a letter to the editor. It provides utility: find a job, a plane ticket, a movie review, a recipe, a crossword, a restaurant. It's entertaining. It's applications. It's coding. It's another way for advertisers to display their wares.

To pull it all together requires some of the same skills as newspapering, and some new ones. I haven't seen much of the arrogance that Steward speaks of - money is still tough to come by, which has a dampening effect - but there's nothing boring about celebrating hits and audience growth. Isn't that what media is all about: reaching as many people as possible with your words and pictures?

Steward closed his column with some advice. I have none. But here are some points:

* It's "traditional media", not "old media."
* "New media" is no longer new media. It's "digital" or "interactive".
* New jobs exist for storytellers, editors, ad representatives, technologists and managers. That's a good thing.
* Stocks, scores, news, can be accessed in real time. Why wait?
* A newspaper's principal asset is its content. Today and for a long time to come. But original content is emerging on Canoe and elsewhere. Visited Salon lately?
* Newspapers talk at readers. Through new media, newspapers are also interacting with them.
* The online ad market is growing. That online spend has to be taken from another medium's allocation. Wonder which one?
* Music on the Internet is no longer necessarily radio with lousy speakers.
* Online shopping is not always the equivalent of an Eaton's catalogue. Unless your catalogue can spin the woman in the snow white bra around.
* Words are wonderful things in new media, too.

And yes, Eric Clapton's best-selling album may have been Unplugged. But that's the perfect metaphor. He stopped creating a long time ago. Plug me in. Wire me up. I'm not ready for Layla with a shuffle beat. I want to make some noise. We all do. And we are. --

Hugh Stuart is the managing director of @Home Canada and former founding executive producer of Sun Media's national Web site, Canoe. He buys three newspapers per day and has a house full of books. A graduate of the University of Toronto, Stuart was a journalist and editor with Thomson daily newspapers in Barrie and Peterborough before joining the Toronto Sun sports department in 1986. Stuart's Sun career included a number of editorial roles. He was Associate Managing Editor before joining Canoe in 1996. He can be contacted at hstuart@home.com.

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No electrons were harmed in the making of this newsletter.

If you've got some Canadian multimedia industry news and information, send it to:

bitstream@multimediator.com

BitStream is edited by James Porteous and produced by MultiMediator.

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