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BitStream Newsletter

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BitStream Newsletter

BitStream, MultiMediator's FREE e-mail newsletter, is published every two weeks. Each issue features news, announcements, job listings, and other items of interest to the Canadian multimedia community.

MultiMediator's BitStream - ISSUE #19
[-- May 3, 2000 --]
The Newsletter of Canada's Multimedia Guide
Publisher: MultiMediator - Editor: James Porteous

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THIS ISSUE'S STREAM:

[-- NEWSPEAK: MULTIMEDIA INDUSTRY NEWS --]
Canadian Space Agency Adds Multimedia Payload
Finalists Announced for Canadian New Media Awards
NASDAQ and Quebec to Form NASDAQ Canada
E-Commerce Still Seen as Up-hill Battle in Canada
Nelvana Extends New Media Reach
Alliance Dresses Up Drop the Beat
Chapters and CBC Form Marketing Alliance
The Wired Classroom is in Session
24/7 Media launches E-mail division in Canada
itemus Invests in Caught in the Web
Animatics Steps out Under New Name
digIT Interactive Acquired by Quebecor Subsidiary
CMP to Honor Seumas McNally
Man Bites Dog: Webcast at 11:00

[-- PLUG: INDUSTRY ANNOUNCEMENTS --]
Canadian New Media Awards Finalists

[-- GEEKERS' CORNER: EDITORIAL --]
What if the Grass Really is Greener?

[-- DIGERATI DATEBOOK: UPCOMING INDUSTRY EVENTS --]
newMedia 2000 Conference and Tradeshow
UpstartCanada.com
Canadian New Media Awards

[-- THE LUDDITE'S LAIR: A SKEPTIC'S VIEW --]
I Was a Teenage Hacker

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[-- NEWSPEAK: MULTIMEDIA INDUSTRY NEWS --]

Canadian Space Agency Adds Multimedia Payload
Canadian Space Agency (CSA) will develop and launch a specialized multimedia communications satellite payload in conjunction with Telsat Canada and a variety of private sector groups. The multimedia payload, a key part of the $600 million ANIK F2 satellite to be launched in 2002, will offer the promise of cheaper, faster and more highly effective communications services, while expanding access to tele-medicine, tele-learning, tele-working, e-commerce, high-speed Internet and government services to citizens living in urban, rural and remote communities throughout Canada.
http://www.space.gc.ca/ENG/Whats_New/2000_04_14.html

Finalists Announced for Canadian New Media Awards
A total of 53 finalists will be competing in 12 categories at the first ever Canadian New Media Awards. The winners will be announced at a gala show and reception to be held May 18 at 7:30 p.m. at the John Bassett Theatre, Metro Toronto Convention Centre, Toronto. "The finalists represent a cross-section of digital content creators and Internet professionals from every province, and the Northwest Territories," said Adam Froman, President and CEO at MMSG - MultiMediator Strategy Group Inc., presenters of the awards. "They are the leading lights of today's new media industry and the mentors to tomorrow's leaders and innovators."
http://www.multimediator.com/cnma

NASDAQ and Quebec to Form NASDAQ Canada
The NASDAQ Stock Market and the Government of Quebec have signed a memorandum of understanding that will see the establishment of NASDAQ Canada. Under the proposed agreement, "the parties will cooperate to facilitate the recognition of NASDAQ Canada as a stock exchange based in Montreal." Following government approval, NASDAQ terminals will be placed at broker/dealers within Quebec. "The strategy of openness on the world adopted by NASDAQ harmonize perfectly with Quebec's openness to free trade," said Quebec Prime Minister Lucien Bouchard. "To date, the results clearly show that Quebec companies have benefited substantially from this move to freer markets. We intend to continue in the same direction and take full advantage of the strategic opportunity provided by NASDAQ's arrival."
http://www.nasdaq.com/

E-Commerce Still Seen as Up-hill Battle in Canada
Everyone sing along now: We're number two! According to a recent Angus Reid Survey, Canadians are second only to Americans as the most active Web surfers in the world. The 1999-2000 survey of 28,000 users found that 56 percent of Canadians had used the Internet between November and January, compared to a rate of 59 percent for Americans. The report, featured in The New York Times, quotes Chapters Online chairman and chief executive Larry Stevenson as saying that his firm has seen first-hand proof of these numbers, but others are not so lucky. In the interview it was reported that the owner of Videoflicks "had so much difficulty getting a Canadian bank to set him up with a credit card merchant account, he went through a U.S. bank. Now, they have a Canadian store on a U.S. Web site, selling videos in U.S. dollars." The problem, according to the report, is that most Canadian banks still consider e-commerce to be a "risky business."
(Source: New York Times)

Nelvana Extends New Media Reach
Nelvana recently announced plans to acquire Klutz, a leading US children's book publisher. Klutz is said to have pioneered the concept of packaging instructional books with activity products, the first of which was "Juggling for the Complete Klutz," sold replete with three beanbags. The firm has since sold in excess of 50 million books and related products. It is thought that the acquisition, pegged at $74 million, will be an ideal addition to Nelvana's plans to develop interactive products via its recently announced new media division.
http://www.newswire.ca/releases/April2000/12/c3062.html
http://www.nelvana.com/

Alliance Dresses Up Drop the Beat
Alliance Atlantis has signed a "multi-tired e-commerce" merchandising deal for the critically acclaimed CBC TV series Drop the Beat. Custom Casual Group will develop a full line of &uqot;funky apparel&uqot; said to reflect the style of clothing seen on the show. The line will begin selling initial products this spring, with the full line slated for fall. The clothing will be sold exclusively via the WebStoreCompany on the TV series' Web site. "Because one of the major elements of hip-hop is clothing," said Sharon Capotosto, VP Merchandising and Licensing, Alliance Atlantis, "this line of merchandise is a natural fit for the series."
http://www.allianceatlantis.com/
http://www.dropthebeat.com/

Chapters and CBC Form Marketing Alliance
Chapters Online and the CBC have announced a marketing and co-promotion alliance. The deal will allow visitor to Chapters.ca to read book-related news articles, book reviews, interviews with authors and book readings, while those visiting cbc.ca will be able to purchase titles via a direct link to Chapters Online.
http://www.chapters.ca/books/cbc
http://www.cbc.ca/

The Wired Classroom is in Session
CBC Radio Syndication and CBC Radio New Media have announced a new 10-part combination radio and Internet series that will examine the promises and problems of making the Internet an integral part of the Canadian education system. The Wired Classroom began April 25th and is currently running daily - Tuesday to Friday - for four weeks, and then it will run once a week for the next six weeks. The Wired Classroom Web site will feature supplemental information to the radio broadcast with audio reports, documentaries from CBC reporters, plus links to other Web sites and speeches. The chat room suggestions from visitors will also be used to generate material for the radio segments.
http://www.cbc.ca/wiredclassroom

24/7 Media launches E-mail division in Canada
The e-mail division of Internet advertising network 24/7 has opened up shop in Canada, thereby putting the world's largest database of opt-in e-mail names, and many of Canada's leading online newsletters, at Canadian marketers' fingertips. Marketers utilize the database to reach targeted audiences by means of e-mail campaigns on subscriber-based "opt-in" newsletters, discussion lists, product updates and sponsored press releases. "One of the best uses of e-mail we've seen is the sponsorship opportunity on Canada NewsWire press releases," said Jay Aber, President 24/7 Media (Canada). "NewsWire e-mails over 200,000 copies of press releases weekly to investors. A six line message at the bottom of each release with a clickable link has been incredibly popular with marketers trying to reach upscale investors."
http://www.247canada.com/

[If you're interested in learning more about the power of e-mail as a marketing tool, please contact the e-mail marketing experts at MultiMediator's parent company, MMSG. mailto:emailmarketing@multimediator.com or call 416-364-1455 Ext. 100.]

itemus Invests in Caught in the Web
itemus and Caught in the Web, both of Toronto, have formed a comprehensive strategic alliance designed to serve both new and existing enterprises seeking to accelerate their growth via the Internet. The $9 million investment features a mix of cash and common shares in itemus. "Caught in the Web, Inc. believes itemus is well on its way to becoming a unique accelerator of Internet businesses in Canada and abroad," said Bobby John, Caught in the Web's co-founder.
http://www.citw.com/

Animatics Steps out Under New Name
The venerable Ottawa multimedia company Animatics is stepping out under a new name, Filament Communications. It is thought the new identity will better reflect the fact that Animatics has "evolved from a small multimedia shop into a mid-sized and growing digital communications company.&uqot; Although the firm started out in animation and entertainment, today they specialize in digital communications with particular emphasis on customer communications, talent market communications, partner and channel communications and investor relations.
http://www.filamentinc.com/

digIT Interactive Acquired by Quebecor Subsidiary
Another Ottawa company, digIT Interactive, has been acquired by Informission Group, a subsidiary of Quebecor World. digIT, specialists in digital branding and marketing channel management, intend to assist Informission's clients in using the Internet to "maximize their marketing strategies and represents an essential component of Informission's end-to-end Web solutions offering.&uqot; &uqot;digIT's focus on striking the optimum balance between new and traditional marketing channels is a perfect fit with our goal of helping clients benefit from an integrated approach to online and traditional media,&uqot; said Pierre Karl Peladeau, President and CEO of Quebecor World." The deal was announced in mid-March. [Okay, we're late in getting the news to you, but at least we did get the news to you! - ED.]
http://www.nurun.com/en/newsevents.html

CMP to Honor Seumas McNally
The CMP Game Media Group announced recently that it is renaming the Independent Game Festival's (IGF) Grand Prize in honor of Seumas McNally. McNally was President and Lead Programmer for northern Ontario's Longbow Digital Arts before succumbing to Hodgkin's Disease on March 21 at the age of 21. The Award will now be known as the Seumas McNally Grand Prize. Longbow recently won the Grand Prize, Best Game Design and the Technical Excellence awards for its videogame project, Tread Marks, at the second annual IGF. (see BitStream #18) &uqot;Seumas McNally impressed everyone with his technical expertise and determination to complete this year's winning game, Tread Marks," said Alex Dunne, Chairman of the IGF. "He dedicated the last years of his life to finishing the wonderful game. But even more important, he was a caring person who was generous with his time and knowledge." (Source: CMP Media)
http://www.longbowdigitalarts.com/

Man Bites Dog: Webcast at 11:00
Hardly a day goes by without someone somewhere warning about the need to maintain standards for online journalism, but as one of our readers recently noted, mistakes do slip through. The National Post Web site recently ran a headline informing readers that: CBC planned to "drop ads 'as much as possible' followed by a series of headlines that read: President plans overhaul: Many local suppertime news shows to be killed. Closing down the freak show." Oh dear. That freak show part was supposed to be a heading for another story. Our faithful reader alerted Post editors to the problem and received a kind thank you note, but they still didn't alter the headline! Freak show indeed.

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[-- PLUG: INDUSTRY ANNOUNCEMENTS --]

Canadian New Media Awards Finalists
Finalists for the Canadian New Media Awards were announced on April 13. Their profiles can be viewed at the Awards Web site at http://www.multimediator.com/cnma. You can also tune into CTV's Digital Desk for candid profiles of this year's finalists. And watch for more Canadian New Media Awards news in upcoming editions of Maclean's, The National Post, newMedia.pro, SHIFT, and Sympatico NetLife.

Winners will be announced at a gala show and reception, Thursday, May 18 at 7:30 p.m. at the John Bassett Theatre, Metro Toronto Convention Centre, 255 Front Street West, Toronto.

One of the most hotly contested award categories is the "Company of the Year" category sponsored by Bell ActiMedia. Finalists for "Company of the Year" include: Blast Radius, Blue Zone Entertainment, ExtendMedia Inc., Learnstream, and McGill Multimedia Inc.

As a leading Internet company, Bell understands the importance of looking towards the future, utilizing the most up to date and advanced technology. Bell's focus on connectivity, commerce and content is strengthened through alliances and partnerships with organizations such as SMART Toronto, Toronto Board of Trade, New Media Village, EDCO, Liberty Village New Media Centre and Enterprise Toronto.

Several organizations deserve to be mentioned for their outstanding contributions to this year's Canadian New Media Awards, including: Canada's Digital Collections, Onvia.com, Media Metrix, Rogers New Media, SaskFilm, Telefilm Canada and Yellow.ca.

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[-- GEEKERS' CORNER: EDITORIAL --]

What if the Grass Really is Greener?

By Adam Froman
afroman@multimediator.com

From an outsider's perspective, those in charge of a corporation's Internet agenda must appear to have the best job in the world. In truth, most of these people are not only frustrated, but are looking for a new job. Their profile is usually about the same: middle to senior management; bright and aggressive; great communicator; passionate about how the Internet can help their organization; and long-time employees who have presented management with a long-term business case explaining why their organization should continue to invest in Internet activities. They are also highly respected within the Internet industry and usually underpaid, at least relative to the opportunities that exist south of the border.

Does it sound like they would have trouble finding work elsewhere? Certainly not.

So, what is it that is holding these individuals at their current organizations? When I sit down with these people I hear a similar story. They have an unquestionable loyalty to their current organizations and in fact enjoy the challenge of trying to convince higher-ups to invest in the Internet. They fear pushing the envelope too far, lest they lose their jobs, and they generally have an undervalued perspective regarding their skills and experience.

From my perspective, I don't think these organizations truly acknowledge the talent these people possess. For many of these organizations, the Internet is still a sideline activity, so it doesn't get the attention it deserves. If they do understand its importance, they are always second-guessing those leading their Internet initiatives.

Now don't get me wrong. I'm not about to suggest that these organizations should be spending a lot of money on Internet ventures in the absence of a clear strategy or business model, but they continue to look at the Internet as a separate business instead of finding ways to integrate it into their existing business activities. What makes things worse is that instead of feeling privileged to employ an individual who both understands the Internet and their existing business, they feel that they are giving that person an opportunity to prove themselves. Boy are they wrong!

Unfortunately for these organizations, they are beginning to face a rude awakening. These talented -- but frustrated -- employees are starting to explore their market value outside of their organizations, and they are falling off their chairs when they find out what is out there. They are questioning their loyalty to their current organizations and whether the challenge is really worth it. Why not? Instead of always having to prove themselves and justify their existence within their existing organizations, they are getting offered opportunities to work in an environment where people appreciate their experience and strategic vision. They have access to 'smart money' for investment in Internet activities, and what puts the icing on the cake is, in many instances, they are significantly increasing their current salaries and compensation packages. These opportunities are real and they are walking away from existing stock options and pension plans and lengthy careers with their existing organization when all they wanted to do was help position their organizations to be competitive in the future.

On a regular basis I am finding myself encouraging many of these individuals not to lose their passion. If they are still enjoying the challenge of trying to convince their senior management to realize their vision, why not push the envelope even harder, because from my point of view, there is no downside. Either they get the chance to help position their organizations to be competitive in the future or they will find greener pastures elsewhere. It will be their existing organizations who will have to decide whether they want to keep these priceless individuals for themselves, or let their careers flourish elsewhere. Time will tell.

Adam Froman is President & CEO of MMSG, Canada's leading Internet strategy and marketing firm. MMSG's team of 'E- Sherpas' guide clients through the planning, production, and promotion of their new media ventures.

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

newMedia 2000 Conference and Tradeshow
May 16-18, 2000 in Toronto, ON
newMedia2000 is an international trade show and conference showcasing digital technology from creative applications to delivery across all media platforms. The event connects manufacturers, distributors and service providers with qualified business, education and training, creative and technical buyers from all industry sectors. http://www.newmedia.ca/

UpstartCanada.com
May 17-18, 2000 in Toronto, ON
UpstartCanada.com is the first event of its kind in Canada, focused at preparing Canadian entrepreneurs for the challenges of starting and growing a successful Internet business. This 2 day event will offer a comprehensive breakdown of the core challenges of getting an Internet business off the ground and keeping it growing.
http://www.upstartcanada.com/

Canadian New Media Awards
May 18, 2000 in Toronto, ON
In this, its inaugural year, the Canadian New Media Awards will honour individuals and companies in a total of 12 diverse categories, including New Media Visionary, Educator of the Year and Most Promising New Company. http://www.multimediator.com/cnma/

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

I Was a Teenage Hacker
By Hartley Steward
mailto:hartleysteward@canoemail.com

Mafiaboy, it turns out, is just a run-of-the-mill, average hacker.

While he has above-average skills, he is not an exceptional hacker, according to RCMP Inspector Yves Roussell of the commercial crime unit that investigated the attack earlier this year on CNN.com and other major Web sites.

"Mafiaboy is not that good, actually," the inspector announced at a press conference recently. "He had a good knowledge of computers, however he wasn't what we could call a genius in that field.&uqot;

I watched the inspector talking to the press and he seems to me, by trashing Mafiaboy's expertise, to be trying somehow to offer us assurances that this was no big deal and the RCMP and other law enforcement officers around the world had this sort of thing under control.

It reminded me of the sort of bravado police forces displayed when it became apparent that white collar crime -- international fraud, smuggling and complex money laundering schemes -- was out of control. The money involved made more familiar crimes seem like kids breaking into the piggy bank.

Despite the posturing, it quickly became obvious the know- how and resources of international law enforcement organizations were woefully inadequate in the face of the 'new' crime wave. It took a generation before law officers and agents were trained to the extent they could make even a dent in the white collar operations.

Even now, they are hard pressed to keep up with the innovations of big business criminals and they are seldom, if ever, ahead of them.

The police tracked down Mafiaboy the old fashioned way; someone ratted on him.

To suggest, as they seemed to, that the youngster was not in the same league as their guys and that they outsmarted him easily, is pure deception. They got lucky. Even an "average" hacker would have baffled them completely had he refrained from bragging about his exploits in the chat rooms.

The fact is, police forces for some time to come, will be at the mercy of hackers. Even the non-genius variety. It will be years before the Internet crime units of the RCMP, the FBI and Interpol have developed and trained agents who can match first-rate hackers.

If the law enforcement agents are far behind, imagine where the laws and courts themselves are. You get some idea when you read the only charges the RCMP have so far found under which they might prosecute Mafiaboy: "mischief pertaining to data."

It sounds like the 15-year-old used white-out on his report card instead of bringing to a standstill a half dozen of the biggest Web sites in cyberspace. He could get two years.

Meantime, cells of highly skilled hackers, criminally and politically motivated, are popping up on every corner of the Net. They are developing programs capable of wreaking havoc on the Net whenever they choose.

Be afraid, as they say. Be very afraid.

--

Hartley Steward is the former Publisher and CEO of the Toronto Sun and has written for numerous other "old media" publications, including Maclean's, Toronto Life, and The Toronto Star.

== 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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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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