Recently in Intellectual Property Category
Though not well known, there exists a dynamic cross-fertilization between media, entertainment and defense technology: i.e., military surveillance, targeting, and weapons systems use technology that was developed primarily for motion pictures and entertainment software. In fact, the U.S. government currently employs Panavision's 300x compound zoom lens for military surveillance; and according to an interview I conducted for The Second Sight (http://www.alexaobrien.com/TheSecondSight) with Bob Harvey, senior vice president of worldwide sales at Panavision, federal contracts with the U.S. State Department are the fastest growing segment of Panavision's business.
More provocative is how Hollywood and video games drive the development of high-speed, high-resolution digital image capture, management, transmission, and display that have implications for fields where these advanced technological applications would be economically unviable to develop on their own. Entertainment software has lead to faster introduction and deployment of processors, broadband networks, and high definition disks like HD-DVD and Blu-Ray. But, "IBM places value on chips made for entertainment software that goes beyond revenue and profits," says Dr. John Kelly, senior vice president and group executive for IBM Technology Group: "These chips help drive technology in other areas." The Mercury Computer's CELL based blade server, for example, can handle the requirements of sonar and radar computation for military or scientific applications, because of its ability to process real time data streams. "The Cell BE processor was originally designed for the volume home entertainment market," says Craig Lund, chief technology officer of Mercury Computer Systems, "but its architecture of nine heterogeneous on-chip cores is well-suited to the type of distributed, real-time processing that will power tomorrow's digital battlefield."
If the U.S. military is the primary global military power, and this hegemony is based on the ability of the U.S. Navy to dominate the world's oceans, then the condition of hegemony is partially based on the superior numbers and technology of U.S. naval vessels and augmented significantly by U.S. dominance in space-based reconnaissance technology, made possible by entertainment software consumers and movie goers world-wide.
Most Americans, however, are oblivious to the considerable role that content industries play in job and wealth creation - not only in terms of regional economic development and growing high-tech industry, but also in terms of U.S. global economic competitiveness:
- In fact, the media, entertainment, and cultural copyright sectors create new jobs at a rate three times faster than the remaining economy. In 2002, these sectors employed 5.48 million workers and accounted for six percent of U.S. gross domestic product. These sectors also generated $89.26 billion in export revenue - surpassing every other category including automotive, aviation, agricultural, as well as chemical and allied products.
- Foreign sales of motion pictures alone totaled $17 billion in 2002. The motion picture industry is the only U.S. sector that boasts a surplus balance of trade with every other country in the world; and the international sale of filmed entertainment plays a significant role in our nation's overall trade surplus in services.
- U.S. sales of entertainment software also totaled $8.2 billion in 2004, and U.S. game designers exported an additional $2.1 billion the same year. Deutsche Bank forecasts that global revenue for game software will grow at thirteen percent annually over the next four years, while PricewaterhouseCooper projects that the U.S. media and entertainment industries will be worth $690 billion by 2009.
This development has hastened the transformation of the U.S. economy from one based largely on information and knowledge to one driven principally by creativity. John Howkins categorizes the creative economy to include fifteen creative sectors - such as research and development, software, design, and content industries like film, music, and video games - that produce intellectual property in the form of patents, copyrights, trademarks and proprietary designs. The annual global revenue for Howkin's fifteen identified sectors was $2.24 trillion in 1999. The U.S. share represents forty percent of the market with revenue totaling $960 billion. The U.S. share also accounts for more than forty percent of research and development, forty percent of television and radio, and thirty percent of film. Howkins calculates that core copyright industries will be worth $6.1 trillion internationally in fifteen years. U.S. dominance in these segments - more than productivity improvements related to new technology and new manufacturing methods - is responsible for much of the nation's global economic competitiveness since the nineteen-eighties.
Viacom Asks YouTube to Remove Clips - New York Times
In a sign of the growing tension between old-line media and the new Internet behemoths, Viacom, the parent company of MTV and Comedy Central, demanded yesterday that YouTube, the video-sharing Web site owned by Google, remove more than 100,000 clips of its programming...
The dispute underscored the tense dance that major media companies are doing with Google, which bought YouTube for $1.65 billion last October. Google hopes to strike deals that will give it the rights to mainstream programming and also wipe away its potential liability for any violations of copyright law by YouTube so far...
YouTube is supported by advertising, but in most cases it does not share that revenue with copyright holders.
These developments are important to note, but the following comment jumped out at me and formed a synergy of thought about intellectual property and property rights in an age where the frontier no longer exists and natural resources of the world have become scarce.
"They choose not to filter out copyrighted content, " said the spokesman, Carl D. Folta. He added that the company apparently had the technology to filter out pornography and hateful material, which is rarely seen on YouTube.
It is no secret that totalitarian governments like the one in China use filtering software designed and sold by western companies, headquartered in liberal democracies.
I am not suggesting that Google’s use of filtering software in the context of this New York Time’s article is totalitarian. It’s not. The thoughts that flowed within me after reading the article and which will follow do not directly relate to the content of the article itself.
NB I do know Google's relationship with the Chinese Communist Party is complicit when Google agreed to filter the Internet in order to secure their place in the oxymoronic "opening" of the Chinese market(s). Who knows? I suspect they rationalize that their decision to do so is part of China's long term transition to liberal democracy brought about by the eventual increase in the economic and consequent political power or the Chinese middle class: in other words, a slow revolution or political evolution. That model is certainly documented in human history. I hope they are right.
In terms of any technology, for example, it is not the knowledge of how to split the atom that creates ill, it is the contextual use of technology that creates both good and evil.
More to my ultimate point, I was more struck by the description of the filtering technology's application and the way in which its reference in the article further illuminated to me my own age and its philosophical dilemmas.
Perhaps, the mention of filtering technology describe within reminded me of how its benign application for Google could be used in other contexts. Certainly, Viacom has the right to protect its intellectual property however it wishes. But what about this notion of intellectual property and ideas itself, the life blood our political and economic discourse?
The rise of fundamentalism and the changing post "Cold War" world order has been studied and described by others more accomplished than me, including Samuel P. Huntington in his "Foreign Affairs" essay and then book, The Clash of Civilizations.
News, media and politics are interdependent organisms...and certainly many political scientists focus on their relationship to one another both in terms of the political cycle of nation states (elections), but also their political economy, in other worlds the market place. The West increasingly depends on sectors like entertainment, research and development, and defense for its continued economic growth, and its overall political economy is direct responsibility for much of the West’s political stability and power.
We live in an age where entertainment and defense are curious bedfellows. For example, entertainment software, as I have said elsewhere on this site, drives the technological development of the processors used by the defense sector.
I have never heard anyone, however, flesh out the dilemma of Locke's notion of property rights in his "Second Treatise on Nature" (the philosophical underpinning of our own democratic republic is this notion of property rights) vis a vis intellectual or abstract property rights, central themselves to our creative economy, the underpinning of the West's continued economic growth.
When intellectual property becomes the central driver of our economy, as it has, and the organs of information that distribute that property are consolidated (as they naturally are. See Creatonomics), what does this mean for the average citizen? For those who poo poo these ideas as too high brow for the mass, or somehow separate mass culture from the philosophical debates of our time, I say, “Forget the forest or the trees, you, my friend, are missing ecosystem of the forest.”
Will our citizen own his plot of land in the media and entertainment landscape, or will he be forced to rent space from the company owned tenement, distribute his goods by the company owned railroad, and buy his supplies from the company owned store? What does self-protection, natural to Locke’s notion of natural rights mean for the individual and social group within society?
More importantly, the growing factionalism of our political discourse and the ceaseless polemics of extremist ideas are not simply a rehashing of polemics from times before. These extreme polemics are manifest because of the underlying conflict and philosophical dilemmas of our time, the repercussions of which are experienced through every organ of society, including its central organs of information and ideas, mass media, entertainment, and art.
There is no save haven or neutral space for the tolerant in a world with less resources and no frontier to escape to. This is the philosophical dilemma of our age and we must understand the dilemma as such. Our liberal democracy depends upon it. Our economic innovation, which drives our nation’s wealth, also depends upon that neutral and open space.
The role of art, information, propaganda, and communication are the new frontier and the battleground in our ‘New World of Information’. Is there an alternative to the increasing space that extremist polemics take up in our nation’s intellectual life? Any alternative must ultimately float the complex tensions of political correctness and fundamental secularism that is equally damaging, in my opinion, to the fabric of our society.
Understanding these questions is the work of my generation and those living whose experience and wisdom can guide our society’s safe passage. There are always consequences, even to inaction, so the focus of those who are interested need not be filled with petitions for the lazy.
When the pilgrims came to North America, they were escaping religious persecution in the Old World. A war of ideas is not new to human history, the epoch that we are in, however, is critical to the very existence of those organisms that we take for granted in the West.
I continue to look to the former dissidents of eastern bloc countries, like the former Czechoslovakian, Vaclav Havel, 'playwright and antipolitican' later president of the democratic Czech Republic, for insight into the post-modern world order.
For example, Havel wrote in the 1981 in his famous essay the "Power of the Powerless” about the post totalitarian state: where ideology is the tyrant (not the Politburo) and how the line of complicity runs through each citizen, including the grocer who puts up his seemingly benign poster which states, "Workers of the World Unite".
All of us live in interesting times, but those of us involved in media have a tremendous responsibility for those who come after us. I look forward to investigating and understanding these questions myself and in the timely work of my generation and others more capable and experienced than me. More on these ideas later.
Excerpts from Guardian Unlimited Technology | Technology | Whose content is it anyway?:
"Media executives are embracing user-generated sites, encouraging amateur talent to upload photos and videos. But, asks Kate Bulkley, who should own the copyright?
In the same article Wallace goes on to say:
Rupert Murdoch, who in early 2004 gave a speech proclaiming that "the potential for China to become a new global center for media and entertainment is slowly becoming more real." By last September, one month after Beijing's decision to re-tighten regulatory controls on foreign media, Murdoch was publicly lamenting that News Corp.'s China business had hit a "brick wall." When it came to foreign media, he complained, China's political leadership was "quite paranoid about what gets through."All this reminds me of what Simon Cowell remarked to Larry King in March this year when asked about the prohibition of "American Idol" like shows in China. Says Cowell:
"Well, because it's a democracy, isn't it? You know, I mean, it's the public voting. So you can understand why they're getting slightly nervous about it. Because it wasn't our show in China, it was the laughing cow, so-and-so, so-and-so competition. And the public got to vote. And suddenly there were demos, and it was democracy. And I think the government went, we don't want this. So then they put out a stupid comment like that. You know? It's that we must control the public. Crazy.
I am not a China believer, yet. AP reports on Chinese TV stations rampant piracy.
Chinese filmmakers accuse TV stations of film piracyExcerpts:
BEIJING — Chinese moviemakers are accusing Chinese TV stations of becoming part of the nation's thriving movie piracy industry.The Chinese Movie Copyright Association says TV stations here air up to 1,500 pirated Chinese movies a year, costing studios up to $9.4 million in lost revenues, the official Xinhua News Agency reported Sunday.
How'd they know I downloaded Meet the Fockers? By Daniel Engber - Slate Magazine
Excerpt:
In general, the movie and recording industries search out illegal file-sharers by hiring security firms to monitor popular file-sharing communities and report back on any activity that appears illegal. A company like MediaSentry, for example, will hop on to a file-sharing network and start searching for specific files. (The client provides a list of copyrighted material to check up on.) Investigators use customized versions of standard torrent trackers to sniff out the IP addresses of anyone who makes a given file available. Then they'll take snapshots of all the other files those users offer. They may also try to connect to one of these targets to see if they can make an illegal download.
Excerpts and Highlights:
Questions had been swirling for months about whether the upstart, which now dishes up 100 million daily videos, was crossing copyright boundaries by letting its members upload videos with little oversight. What was surprising was that it was an individual who fired the first shot -- Robert Tur, an independent photographer famous for filming the 1992 Los Angeles riots -- instead of a big Hollywood studio or major music label.
Wired piece on Shaw Hogan, who chose to fight an MPAA lawsuit against him for allegedly downloading intellectual property on BitTorrent.
From the piece:
"This has left several controversies unresolved, including the lawfulness of how the associations get access to ISP records and whether it’s possible to definitively tie a person to an IP address in the age of Wi-Fi.
Hogan, who coded his way to millions as the CEO of Digital Point Solutions, is determined to change this. Though he expects to incur more than $100,000 in legal fees, he thinks it’s a small price to pay to challenge the MPAA’s tactics. “They’re completely abusing the system,” Hogan says. “I would spend well into the millions on this.”
Of course, the MPAA isn’t backing down either. “I hear Mr. Hogan has said, ‘I’m absolutely going to go to trial,’ and that is his prerogative,” says John G. Malcolm, the MPAA’s head of antipiracy. “We look forward to addressing his issues in a court of law.” Look for a jury to weigh in by next summer."
A specter is haunting America - a specter of the
creative economy. Its expressions
are the lifeblood of our nation's economic muscle, and the metamorphoses of our
social and economic organs are symptoms of its manifestation. Yet, we are largely unaware of its
existence, and its ideation remains unarticulated in our public discourse -
obscured as it were by the rapping bare knuckles of narrow-minded extremities
on the left and right hands of our cultural divide. The more opposable of left-handed thumbs
call the phantom menace capitalism
and condemn the corporatization of art and the commodification of culture. On the right, all fingers - except
pinkies - point to the sun setting in the West and call the umbrage Hollywood. For
it is better, that one of your fingers should perish rather than have your
whole hand cast into Gehenna.
I have reduced these analogue dubs into binary code
- comprised of the numeral zero and - for the increasing number of this
magazine's bilingual readers - the numero
uno. I then filtered out
discordant noise using compression algorithms that preserved each sound bite's
ideological fidelity, but I scrambled the signals so that left and right
channels reversed stereophonic polarity.
Presto change-o! At zero
decibels, the human ear perceives near silence - or the sound of both hands
clapping for the "no brow" culture of today's youth.† The canine ear, however,
would still detect the looping chant of hippies asking if that is freedom rock
they hear, and if so, that the volume be turned up.
Friends, country/city men/women! Before you hand cyanide to the old
man behind the curtain - excuse me, 35mm camera - or have postmodern nightmares
of movie executives screaming, “What are our theaters now if not the tombs and
monuments to Film?” Before you condemn the blasphemy of Technicolor's "technology
agnostic" e-cinema rollout; or become a digital Bolshevik, shooting at the
heart and mind of film's aristocracy with your web clips of skateboarding dogs;
before you write that long-procrastinated blog manifesto on the weak social
capital of myspace friendship; or, better yet, one to educate our Prince de’
Medici; keep in mind: This is no joke.
Call it what you will, but the creative economy is here, and our
nation's and your region's wealth depend upon it.
Our means of production is no longer capital,
natural resources, or labor, declares economist Peter Drucker. It's
information.
Yet, one in four IT jobs and ten to twenty percent of financial
services jobs in the United States and Europe will be offshored by 2010. Forrester Research estimates that from
2000 to 2015 some 3.3 million white-collar jobs and $136 billion in wages will
shift from the U.S. to lower-cost countries like India, China, and Russia. Manufacturing bore the brunt of outsourcing
in the past. Today, the service
sector, which employs four-fifths of the labor force, is increasingly affected.[1]
“In the old days," says computer scientist
Vernor Vinge, “anybody with even routine skills could get a job as a
programmer. That isn’t true
anymore. The routine functions are
increasingly being turned over to machines.”[2] Appligenics, for example, a small
British company, has created software that writes software. The application is "up to 500,000
times faster than human programmers and completely error-free," says Jim
Close, the company's business development director: "That means whereas a
human would consider four hundred lines of computer code a good day's work, our
software writes that in under a quarter of a second."[3] Even online à la carte legal services have made inroads into the legal
industry. Analysts say, "As
online resources grow, the demand for traditional services force lawyers to
lower fees."[4]
More provocative than outsourcing, is the magnitude
of convergence between telecommunications, digital technology and
industry. This development has
hastened the transformation of our economy from one based largely on
information and knowledge to one driven principally by creativity. John Howkins categorizes the
creative economy to include fifteen creative sectors - such as research and
development, software, design, and content industries like film, music, and
video games - that produce
intellectual property in the form of patents, copyrights, trademarks and
proprietary designs. The annual
global revenue for Howkin’s fifteen identified sectors was $2.24 trillion in
1999. The U.S. share represents
forty percent of the market with revenue totaling $960 billion. The U.S. share also accounts for more
than forty percent of research and development, forty percent of television and
radio, and thirty percent of film.
Howkins calculates that core copyright industries will be worth $6.1
trillion internationally in fifteen years.
U.S. dominance in these segments - more than productivity improvements
related to new technology and new manufacturing methods - is responsible for
much of the nation’s global economic competitiveness since the
nineteen-eighties.[5]
The creative economy suggests more than
technological progress or the growth of media and entertainment. However, the latter development is
important to emphasize. Most of us
are oblivious to the considerable role that content industries play in job and
wealth creation - not only in terms of regional economic development and
growing high-tech industry, but also in terms of our nation's global economic
competitiveness. In fact, the media,
entertainment, and cultural copyright sectors create new jobs at a rate three
times faster than the remaining economy.
In 2002, these sectors employed 5.48 million workers and accounted for
six percent of U.S. gross domestic product. These sectors also generated $89.26
billion in export revenue - surpassing every other category including
automotive, aviation, agricultural, as well as chemical and allied products.[6] Foreign sales of motion pictures alone
totaled $17 billion in 2002. The
motion picture industry is the only U.S. sector that boasts a surplus balance
of trade with every other country in the world; and the international sale of
filmed entertainment plays a significant role in our nation's overall trade
surplus in services.[7] U.S. sales of entertainment software
also totaled $8.2 billion in 2004, and U.S. game designers exported an
additional $2.1 billion the same year. [8]
Deutsche
Bank forecasts that global revenue for game software will grow at thirteen
percent annually over the next four years, while PricewaterhouseCooper projects
that the U.S. media and entertainment industries will be worth $690 billion by
2009.[9]
U.S. regions are increasingly unable to compete
against places like Bangalore, India or other lower cost localities for the
routine information and knowledge jobs considered to be the holy grail of
economic development. Emphasis is
frequently placed on attracting and growing high-tech to the exclusion of all
else. In reality, the high-tech
sector does not grow in a vacuum.
It certainly will not grow without the creative forms of the content
industries that drive technological advance for fields as diverse as real
estate and medicine, and that also add high-value to technology products and
consumer goods in today's glutted marketplace. “You can’t have high-tech innovation
without art and music," writes urban planner Richard Florida: "All
forms of creativity feed off each other."[10] Ultimately, high-tech requires a
creative social milieu - what Florida has termed "the creative
ethos". This chief ingredient
underpins the entire creative economy and those fertile regions that establish
tangible high-tech hubs.
Even firms cannot compete exclusively with
technology in today's global market.
Technology is cheap and ubiquitous until it acquires the
high-value-added context of creative forms like branding, content, and design. “At Sony, we assume that all the
products of our competitors have basically the same technology, price,
performance, and features," says Norio Ohga, former chairman at Sony.
“Design is the only thing that differentiates one product from another in the
marketplace.”[11] Global competition has pushed quality so
high and prices so low that the pressure to add value is intense. “We can’t compete with the pricing
structure and labor costs of the Far East," remarks Paul Thomson, director
of the Cooper-Hewitt Museum in New York City. “So how can we compete? It has to be with design.”[12]
Stock from companies that place a heavy emphasis on
design outperform their counterparts by a wide margin.[13] For every percentage of sales invested
in product design, a company’s profits increase by an average of three to four
percent.[14] In 2001, Whirlpool introduced its Duet
line of washers and dryers. By
2003, the company had nineteen percent of the front-loading washer market, up
from zero, two years before.
"If you looked four or five years ago, the average life of a
washing machine was something like thirteen years," says CEO, Jeff Fettig:
"We're surveying owners and finding out a lot of people are replacing
their washing machine with the Duet after five, six, or seven years because
they want it, not because their old machine broke or wore out."[15] Coleman Coolers was long considered the
industry standard until competition began to erode the company's market
share. In 1999, Coleman redesigned
its coolers. Two years later, the
company's cooler sales increased by forty percent and Coleman led its product
market for the first time in years.[16]
“Jeff Grady, CEO of Charleston based DLO,” remarks
Director of the Charleston Digital Corridor, Ernest Andrade, “was smart enough
to figure out that you've the iPod, but you don't have the little accessories
to go along with it.” Design also
has the powerful capacity to create new markets - whether for ring tones,
medical devices, or cutensils.
“Abundance, Asia, and Automation turn goods and services into
commodities so quickly,” explains business writer Daniel Pink, “that the only
way to survive is by constantly developing new innovations, inventing new
categories.”[17] “Every product from sneakers to software
is constantly being upgraded," writes Florida, “and everything from mutual
funds to potato chips now comes in an ever-proliferating variety of types -
because the Creative Economy is largely based on selling novelty, variety, and
customization.”[18] "Design has expanded its definition
to include creating, recognizing, and developing opportunities to build business,"
says Tim Brown, president and CEO of IDEO, a design firm based in Palo Alto.[19]
While the creative economy does not represent the
first time application of the high-value-added context of creative forms to
technology products or consumer goods, it does embody the large scale and
pervasive use of this methodology - what Virginia Postrel has termed the
"aesthetic imperative" - and the considerable bearing that this
approach has on the profit margins of every major industry sector. “Manufacturing and technology generate
wealth only when they make matter and information serve human desire,"
writes Postrel: “Desire is the true source of economic value.”[20] When The
New York Times asked GM Vice Chairman, Bob Lutz how his approach differed
from his predecessors, Lutz responded, “I see us being in the art
business. Art, entertainment and
mobile sculpture, which, coincidentally, also happens to provide
transportation.”[21]
Branding, like design, can distinguish a product
from the glut of global competition, but firms today cannot succeed with a
brand strategy based on awareness and identity alone. “Mastery of design,
empathy, play, and other seemingly, 'soft' aptitudes," explains business
writer Daniel Pink, is “the main way for individuals and firms to stand out in
a crowded marketplace.”[22] "It may seem odd to hear a designer
discuss brand positioning," writes John Tanz in Fortune: "Get over it.
No longer the wacky freethinkers whose work may never exist anywhere
beyond their sketchpads and computer screens, designers are developing serious
business chops, becoming better versed in the concerns of the manufacturing,
finance, and marketing departments."[23]
When I asked media-christened branding expert, Rob
Frankel, how companies protect brand in the digital age with its lower barriers
to market entry, he responded: "Most of these guys confuse 'brand' with
identity or product. Identity is one small fraction of brand and products are
merely 'proof' of your brand's promise." Frankel distinguishes himself from
"old school" marketing consultants like Jack Trout and Al Ries
"by redefining brand in a way that impacts the bottom line." "Branding," Frankel continues,
"is not about getting your prospects to choose you over the
competition. It's about getting
your prospects to see you as the only solution to their problem. Everyone makes
a PC, but why do some people insist on a Mac, when it costs more and ostensibly
has less software?"
When you look at the size and scope of the global
advertising industry, you can appreciate how creativity factors into our
economy. Zenith Media estimates
that global expenditure on advertising totaled $403 billion in 2005.[24] According to economists Deidre McClosky
and Arjo Klamer, persuasion, advertising, counseling, and consulting account
for twenty-five percent of U.S. gross domestic product.[25]
Economist Gillian Doyle also notes that when “expenditure on advertising is
calculated as a percentage of GDP, the pattern that emerges indicates that as
the national economy has grown over time in real terms, advertising has not
just grown in parallel, but has grown even faster. So the amount of advertising activity in
an economy is related to the size and growth rates of the economy itself, and
advertising has tended to account for a progressively more significant portion
of GDP as time goes on.”[26]
The convergence of digital technology,
telecommunications, and industry has also eroded product market
boundaries. Sectors that were once
distinct and unrelated now overlap through their shared use of media and
information technology. "What
we do in medicine now relies on digital imaging. It also relies on high-resolution,
high-speed data processing," says Dr. John Raymond, Vice President for
Academic Affairs and Provost at the Medical University of South Carolina. So do digital cinema and entertainment
software. "MUSC was one of the
first institutions in the U.S. to have a sixty-four slice CT scan that gives
amazingly high-resolution pictures of the heart," continues Dr. Raymond,
"Some people believe that this technology may even supplant doing cardiac
catherizations for diagnosing cardiac disease. But trying to enhance the images, learn
how to use computer algorithms to read them correctly, or transfer the data
rich files to a distant site to be read by an expert; those are issues we have
to deal with, that we haven't dealt with adequately."
The CELL based Mercury Computer blade server is a
perfect example of a direct technology transfer from entertainment software to
medicine. Video games rely on
powerful CPUs for the high-speed data processing required to render 3D images
in real time. As gamers demand a
more heightened experience and greater realism, the data rich digital graphics
and audio require more processor speed. Advanced scanning techniques - like the
one described by Dr. Raymond - lead to huge amounts of data. Using a traditional computer processor,
reconstructing an image takes two seconds per slice, or over five minutes for a
full image, but using the CELL processor, a central processing unit developed
and optimized for gaming and broadband by Sony, IBM, and Toshiba, an image is
processed in seconds.
Digital cinema technology has repercussions for any
application where the display and transmission of high-speed high-resolution
data rich images are required: for example, high-resolution satellite imagery
or telemedicine. Consequently, the
National Institute of Standards and Technology developed scientific measures
and test materials to assess image quality and the effects of compression for
the display and transmission of digital content in collaboration with the
Digital Cinema Initiatives LLC - a consortium formed by seven major movie
studios to create a digital equivalent to 35mm film. Before a cinema can screen digital movie
content, the presentation is compressed using high-speed high-resolution
algorithms, encrypted, and transported to theaters via satellite, broadband, or
hard drive. In the end,
"networks don't care what kind of data you are sending over them,"
says Bob Gibbons, Director of Marketing and Communications at Kodak Digital
Cinema.
Military surveillance, targeting, and weapons
testing also use technology that was developed for motion pictures and
entertainment software. The U.S.
government currently employs Panavision's 300x compound zoom lens for military
surveillance. The lens made its
television debut during ESPN's coverage of the Mercedes Championship in Maui
this year. Applying Panavision's
lens technology with a high-speed high-resolution digital camera like the
Panavision HDMAX - that incorporates the QuadHD CMOS sensor - detailed images
of test missiles or objects of interest can be captured for analysis or target
verification. The Mercury
Computer’s CELL based blade server can also handle the requirements of sonar
and radar computation for military or scientific applications, because of its
ability to process real time data streams.
“The Cell BE processor was originally designed for the volume home
entertainment market," says Craig Lund, chief technology officer of
Mercury Computer Systems, "but its architecture of nine heterogeneous
on-chip cores is well-suited to the type of distributed, real-time processing
that will power tomorrow's digital battlefield.”[27]
Hollywood and video games drive the development of
high-speed high-resolution digital image capture, management, transmission, and
display that have implications for fields where these advanced technological
applications would be economically unviable to develop on their own. Digital Light Processing technology
(DLP) from Texas Instruments uses Digital Micromirror Device light modulators
(DMD). DMD technology has made
significant inroads into both the home and theatrical digital projection
display markets, but the technology also has applications ranging from
volumetric display, holographic data storage, lithography, scientific
instrumentation, and medical imaging.
Entertainment software has lead to faster introduction and deployment of
processors, broadband networks, and high definition disks like HD-DVD and
Blu-Ray. The “media richness demanded by gamers and game developers drives
progress in graphics and audio for the entire PC industry,” notes John C. Beck
and Mitchell Wade in their study of the game generation's influence on
organizational values in business.[28] “IBM places value on chips made for
entertainment software that goes beyond revenue and profits," says Dr.
John Kelly, senior vice president and group executive for IBM Technology Group:
"These chips help drive technology in other areas." Online gaming and game downloads are one
of the fastest growing uses for bandwidth connections, and entertainment
software stimulates the demand for third and fourth generation cellular
telephony with broadband speed capability. PricewaterhouseCooper projects that
wireless games in the U.S. will grow from $142 million in 2003 to $2.8 billion
by 2008.[29]
Despite a prima
facie assumption regarding technology's cardinal role and inherent value in
our local and national economies - technology, while an important catalyst, is
not the central driver of long-term economic growth. Although, we are not used to
"thinking of ideas as economic goods," writes economist Paul Romer,
"they are surely the most significant ones that we produce." Unlike
traditional goods such as raw materials or machines that diminish or
deteriorate with repeated use, ideas offer us increasing returns and actually
grow in value the more they are used.[30] The increased competition and shorter
product cycles of the global market, however, have made time a scarce
commodity. As Florida writes,
"Time is literally worth more than it use to be."[31] Therefore, sustained and consistent
creativity is the keys to deriving durable economic growth in today's
economy. The "only way for us
to produce more economic value-and thereby generate economic growth,"
continues Romer, "is to find ever more valuable ways to make use of the
objects available to us.”[32]
The changes in our economic, social, and cultural
organizations that have been developing for decades and define the landscape of
the creative economy are not the result of new forms of technology. Technology, innovation, and creativity
are the products of these broader and deeper shifts; because, it is these
structures, and not technology, that consistently support and elicit the very
conception, production, and transmission of ideas that generate economic
wealth. The “most important ideas
of all are meta-ideas," writes Romer, “ideas about how to support the
production and transmission of other ideas.”[33]
Creativity is expensive and time consuming. The production of commodities in the
creative industries, which include film and television, is said to suffer from
"Baumol's disease": Costs
in these sectors tend to climb faster than the rate of inflation, chiefly
because creativity is dependent on highly specialized human capital and
inherently labor intensive. Labor costs in the creative sectors also tend to
rise more rapidly than others do. [34]
Conventional creative sectors - like high tech and
entertainment - have always fallen under the traditional research and
development model with its characteristic high production and low replication
costs; intrinsic risk; and dependencies on intellectual property and human
capital.[35] Once the first generation of a
pharmaceutical like Lipitor or a movie like Episode
III: Revenge of the Sith is produced in its expensive and lengthy R&D
phase, it costs comparatively little to reproduce and supply it to extra
customers. In the United States,
the period from development, to FDA approval, to market for a new prescription
medicine is ten to fifteen years, and typically costs $802 million.[36] While corresponding data for the time it
takes an average feature to make it to market varies, the industry slang
"development hell" is frequently used to emphasize the notoriously
long periods projects can remain in development before they are finally
scrapped or "green lit." Spiderman, for example, was announced as
a film in 1986 but not released until 2002. In 2005, the cost of an average feature
released by MPAA members was $96.2 million. About thirty-seven percent of, that
was spent on marketing. The norm
for expenditure on an hour-long television episode is $2 million, not counting
development costs.[37] Console game development costs between
$3 million to $10 million per title,[38]
with time from inception to market ranging from one to four years.[39] Meanwhile, costs are projected to rise as
demand for third party intellectual property becomes more desirable to game
companies looking to mitigate escalating risks from fewer profitable
titles. Along with the increase in
licensing fees from proven sports and movie franchises, development costs for
three dimensional graphics, artificial intelligence, and enhanced voice and
sound effects for the next generation game consoles are also projected to rise.
Creativity carries tremendous risk. Only five of every five thousand
medicines tested, according to the Pharmaceutical Research and Manufacturers of
America, make it to clinical trials.
Based on research by the Tufts Center for the Study of Drug Development,
only one of these five is eventually approved for patient use. Of the roughly
forty thousand feature scripts that are written on spec in any given year,
three thousand are optioned and a mere fifty actually made.[40] In 2005, new releases totaled five
hundred and forty-nine. One hundred
and ninety-four or roughly thirty-five percent were released by the majors and
the other three hundred and fifty-five or sixty-five percent by independent
distributors. According to media
analyst Christopher Gasson, only two out of every ten films made by even the most
successful Hollywood studios, make a profit. [41] Most films lose money. "It’s a very frustrating
process," remarks Megan Wolpert, Executive Vice President of Spyglass
Television, "In terms of television very little work is done on spec. Development has a seventy-five percent
failure rate every year and that’s part of the game. You buy eighty projects knowing that
fourteen will be good enough to shoot.
Then of that fourteen, six will be on the air, and the rest just go
away." In 2004, three percent
of PlayStation 2, Xbox, and GameCube titles accounted for 30 percent of the
firms' combined 2004 revenues. The
total market for games included 1,751 separate titles, of which 91.3 percent
sold fewer than 500,000 copies.[42]
Writers like Thomas Friedman and others have
referred to the flattening or horizontal effect of globalization on
business. The trend is
fundamentally a direct result of the emergence of the creative economy. Urban planner Richard Florida notes how
the formal venture capital system, high-tech startup phenomenon, and rise in
research spending have now combined with the creative factory and
subcontract-manufacture systems - translate outsourcing - and a new creative
social milieu to form an “age of pervasive creativity that permeates all
sectors of the economy and society.” [43] Focus on creativity, while
outsourcing or automating production, provides firms with the most efficient
division of labor. According to
Timothy Sturgeon of MIT’s Industrial Performance Center, this model has another
benefit; subcontracted manufacture can also capitalize on risk spreading and
economies of scale. “I think that quality wins in the
long run. Now, quality can also
mean that it is downsized that means that you may be the best but you’re not
the biggest," says Bob Harvey, Vice President of Worldwide Sales at
Panavision: "I believe that Panavision is the best but we are not the
biggest. We manufacture everything
here in this country for the most part.
That isn't fair with digital obviously, but we design everything
here. That is fair with digital.”
Despite our old-fashioned notions about creativity
as something relegated to the fringe, or worse, the elite, creativity is
mainstream. More Americans work in
art, entertainment, and design, than as lawyers, accountants, and auditors.[44] In the United States, professional
artists, writers, and performers have increased three hundred and twenty-five
percent from 525,000 in 1950 to 2.5 million in 1999.[45] Graphic designers outnumber chemical
engineers by four to one, and more Americans are directly employed in film
production than in the steel industry.[46]
Corporate recruiters visit graduate art schools
looking for talent, and design schools emphasize corporate skills along with
draftsmanship. Northwestern's
Master's program in product development at the McCormick School of Engineering
and Applied Science includes courses in basic accounting, marketing, conflict
resolution, statistics, and ethics. Design programs at Stanford and the
Illinois Institute of Technology are also adding business courses to their curriculums.[47] The “MFA is the new MBA,” writes Daniel
Pink, because, in today’s Creative Economy, “the high-concept abilities of an
artist are often more valuable than the easily replicated [left brain] directed
skills of an entry-level business graduate.”[48]
Meanwhile, firms in the gaming industry, the
fastest growing entertainment sector, search for gifted grads with degrees like
Carnegie Mellon’s new Masters of Entertainment Technology or MET. “The larger FX houses are constantly
asking us about our students," says Professor John Kundert-Gibbs, Director
of Clemson’s Digital Production Arts Program - whose alumnae work for the likes
of ILM, Pixar, EA, and Nintendo. As
one game developer put it to columnist Tom Loftus, “Changes in the way games
are built indicate less of a future demand for coders, but more of a demand for
artists, producers, story tellers, and designers.” [49]
Film and video games are to this generation what
journalism was to Bob Woodward’s.
Media and art programs are busting at the seams. Enrollment at the Savannah College of
Art and Design has increased fifty-two percent in the last five years. “When I arrived at USC in 2000,” says
Susan Hogue, Media Arts Instructor at the University of South Carolina and
documentarian, “there might have
been two-hundred and twenty majors in Media Arts, and now it’s over four
hundred.”
In his prescient and aptly titled book, The Rise of the Creative Class, urban
planner Richard Florida identified the emergence of the new economic and social
class of “thirty-eight million Americans roughly thirty percent of the entire
U.S. workforce,” whose creativity is the driving force of our nation’s economic
growth.
[50]
The key
difference between the Creative Class and other classes lie in what they are
primarily paid to do. Those in the
Working and Service Classes are primarily paid to execute according to
plan. The core of the Creative
Class includes people in science and engineering, architecture and design,
education, arts, entertainment, and the media whose economic function is to
create new ideas, new technology, or new creative content and intellectual
property.[51] Around this core, exists a broader group
of creative professionals in business, finance, law, health care and other
related fields, who engage in complex problem solving that involves a lot of
independent judgment and requires high levels of education or human capital.[52] Today in the United States, the
Creative Class is larger than the traditional Working Class. The Service Class, totaling fifty-five
million workers or forty-three percent of the U.S. workforce, is the largest of
all. The growth of the Service
Class, according to Florida, is also largely a response to the demands of the
creative economy. “Members of the
Creative Class, because they are well compensated and work long and
unpredictable hours," writes Florida, “require a growing pool of low-end
service workers to take care of them and do their chores.”[53]
Our collective blackout about the central driver in
our economy flows partly from the intoxicating polemics of the previous
generations’ culture war that eclipse most public discourse about the shifting
boundaries of our social geography and economic life. On the left, critics bemoan the
commodification of art and corporate America’s cooption of the symbols from the
former bohemian and newer alternative counterculture. “Hip is how business understands
itself," writes Tom Frank, suggesting that the emerging culture is just
another aspect of capitalism.[54] On the right, detractors echo related
themes about the devolution of society.
David Brooks describes the members of today’s generation as “The
Organization Kid," part of the “Future Workaholics of America, obsessively
career conscious and deferent to any authority that will get them
ahead." Brooks argues that the
game generation lacks defining concepts of “character and virtue," because
they have "been reared in a country that has lost, in its frenetic seeking
after happiness and success, the language of sin and character-building." "When I asked about moral questions
they often flee such talk and start discussing legislative questions,"
writes Brooks: "These young people are not part of an insurrection against
inherited order. They are not even part of the conservative reaction against
the insurrection. It's not that
they reject one side of that culture war, or embrace the other. They've just
moved on.”
[55]
Yes, they have, and the notion illustrates a
fundamental difference between today’s generation and the boomers. The latter are wired to view creativity
as a choice between “selling out" or “sticking it to the man”, and the
quest for the great society as a battle between the mediocrity of relativism
and the virtue of absolutes. To use
former bohemian terminology, today’s generation do not have those
hang-ups. Perhaps like earlier
dissident antipoliticians from the former communist Czechoslovakia, who used
satire and absurdity to highlight the fact that in a post-modern consumer society
the “line of complicity runs through each of us," this new American
generation distrusts political grandstanding and even traditional forms of
organized politics. “Ideology is a
specious way of relating to the world,” writes Vaclav Havel former antipolitician
later turned President of the democratic Czech Republic - especially when it
fails to find solutions that arise organically outside the limits of its
proverbial box. “All of us,” writes
Virgina Postrel, “must give up the cultural baggage we've inherited from the
romantics, who set art against tech, and feeling against reason; from the
modernists, who treated ornament as crime and commerce as corruption; and from
the efficiency experts, who valued function while disdaining form. We must abandon our prejudices regarding
the sources of economic value. The production of wealth comes not simply from
labor or raw materials or even intellectual brilliance. It comes from new ways
to give people what they want. By matching creativity and desire, the economy
will renew itself.”[56]
The
discussion continues online. For an
in-depth look at this and other related topics, visit
http://www.alexaobrien.com/TheSecondSight.
If you would like to share your thoughts with me, or if you are a
Nigerian official seeking to bequest the estate of a distant O'Brien relation
who died unexpectedly without an heir, my email address is
email@alexaobrien.com.
†
The
term "no brow" is attributed to writer John Seabrook, Nobrow: The Culture of Marketing, the
Marketing of Culture (New York: Alfred Knopf, 2000).
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[3] Software
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[30] Paul Romer, “Ideas and things,” The Economist (11 September 1993).
[31] Florida, 151.
[32] Paul Romer, “Ideas and things,” The Economist (11 September 1993).
[33] Paul Romer, “Economic Growth,” The Fortune Encyclopedia of Economics,
David R. Henderson (ed.) (New York: Time Warner Books, 1993) 33.
[34] Doyle, 80.
[35] Colin Hoskins, Stuart McFadyen, Adam
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[36] Backgrounder:
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[38] Cost
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