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Media Monopoly: Thomas Edison to Hillary Rosen

An anonymous reader writes "George Ziemann has posted two excellent articles that explore the early days of the recording and music industry, how their attempts to monopolize their respective mediums in the past failed, and how their attempts to do so strangely mirror those presently being undertaken by contemporary media conglomerates to control digital distribution over the Net. Seems the two industries back at the turn of the century tried to pool their patents to block out competition like the RIAA and the big media companies today pool their copyrights. The first article "The Dawn of Recorded Music and the First Pirates" focuses on early collusion in the phonograph industry. The second "Music, Movies and Monopoly" on Thomas Edison's failed attempts to restrain fair trade in the two new media he gave commercial rise to."

33 of 189 comments (clear)

  1. It's time they take notes on history. by Anonymous Coward · · Score: 5, Insightful

    Those who don't learn by history are doomed to repeat it. Why oh why don't they freakin' learn?

    1. Re:It's time they take notes on history. by kbonin · · Score: 4, Insightful

      They have learned that:

      1. There's a sufficiently long interval between when a monopoly begins flexing its control and when it is either stopped by antitrust law or made irrelevant that an obscenely large amount of money can be made, and

      2. Changes in law have reduced penalties in most cases to forms like "rebate coupons", allowing the guilty to effectively keep all the proceeds.

      Its like Microsoft - technically they're just playing the system, and don't forget that the US has the best government money can buy...

    2. Re:It's time they take notes on history. by einTier · · Score: 4, Insightful

      Isn't that the truth. In the whole of my history classes, I got to World War II only once -- and that was in college. Only one of the other classes made it to the 1900's.

      On top of that, anything truly interesting (read controversial) was simply glossed over -- with the exception of slavery, where I was told that I was responsible today for the sins of my great, great, great grandfather 150 years ago. I shouldn't have to say that he wasn't even in America, and the first of my ancestry to set foot in America married a Native American.

      History isn't about learning, if it ever was. It's all about indoctrination.

      --
      -------------------------------------------------- $665.95 -- retail price of the beast.
    3. Re:It's time they take notes on history. by JamesOfTheDesert · · Score: 4, Funny
      Those who don't learn by history are doomed to repeat it.

      Well, look on the bright side: repeating history will be forbidden unless you own the copyright on it.

      --

      Java is the blue pill
      Choose the red pill
  2. phonograph industry by Anonymous Coward · · Score: 5, Funny

    Did anyone else read that as Pornography Industry?

  3. Ted Turner's opinion by fatcat1111 · · Score: 5, Interesting

    Here's Ted Turner's letter voicing opposition (!) to increased media consolidation.

    --
    How Politicians Lie: http://www.factcheck.org/
  4. What else is new? by SamBC · · Score: 5, Insightful

    Isn't it both a matter of study and anecdotal evidence that corporations (and sometimes individuals) generally try and stifle competition in a new industry, to their ultimate disadvantage?

  5. The only reason they failed by Freston+Youseff · · Score: 4, Insightful

    is that they tried to "dominate" a tangible market.

    --

  6. Con Edison by h00pla · · Score: 5, Funny
    Gives new meaning to that term, doesn't it

    --
    I've been swashdotted -- Elmer Fudd
    1. Re:Con Edison by Mooncaller · · Score: 5, Interesting

      Edison was a true pioneer. He took FUD to new hights. He used paten portfolios to styfle competion in ways never dreamed of by his predicesors. He accuired the ownership of patens in very unsavory ways. He was one of the first to enslave inventors (read developers). Between him and Standard Oil, they wrote the book on monopolistic tyrany. Bill Gates is just extending the techniques pioneered by Edison.

  7. Against the flow. Fair and balanced. by Anonymous Coward · · Score: 5, Funny

    Fox News Channel

    Enough said.

  8. A Convo by CptChipJew · · Score: 4, Funny

    Thomas Edison: Hillary, you need to lose weight seriously. My left ear is deaf and I can still hear the walls move when you walk.

    Hillary: }=(

    --
    Vonal Declosion
  9. Media Monopoly ... by BabyDave · · Score: 5, Funny

    Why don't we get Parker Brothers/Hasbro/whoever to make a "Media Monopoly(TM)" - instead of streets, you buy towns/cities, with houses representing newspapers, radio stations etc, and a hotel being a TV station or something. We could have Chance cards along the lines of "A new file-sharing app is launched. Lose $200,000,000" or "The American legal system develops collective insanity and passes the DMCA. Collect $5 billion", "The IRS finds out about the $10 billion stuffed down the back of the CEO's sofa, go directly to jail" etc etc.

    Come on guys! If we put our heads together, we could probably come up with decent analogies for the utilities, stations, free parking etc, then launch the game in a blaze of publicity, giving the profits (excessive optimism, probably ...) to the EFF or something.

    1. Re:Media Monopoly ... by Realistic_Dragon · · Score: 4, Insightful

      Perhaps it would be more pertinant to have them purchase politicans instead of properties? Park Lane would become the president and Old Kent Road would become the junior congressman from Idaho :o)

      --
      Beep beep.
  10. Starr-Gennett by jwilcox154 · · Score: 5, Informative

    Seems the two industries back at the turn of the century tried to pool their patents to block out competition like the RIAA and the big media companies today pool their copyrights.

    Because of those patents, Starr-Gennett "along with several other companies" were sued in the early Nineteen-Twenties, which the the American Graphophone Company (Columbia) and the Victor Talking Machine Co. Lost.

    The Second Circuit Court of appeals held the patent void for lack of invention and for abandonment.

    Not only did the lawsuit effectively end the majors' monopolization of lateral recording, it formed a bond between the smaller companies which had joined the Gennetts in the legal battle. Leasing arrangements between the companies followed, eventually involving hundreds of masters.

  11. Turn of the century... by ksheka · · Score: 4, Funny

    ...What, like three years ago? Oh, you mean the *previous* century...

    --
    alias uptime="echo '5:33pm up 22342352324 days, 6:28, 2124315623 users, load average: 2432.40, 12312.31, 123123.19'"
  12. I did some research on Edison by Anonymous Coward · · Score: 5, Insightful

    Don't really care for him
    Credited with lots of nice things of course.

    I guess a shitload of money, federal friends, a huge orange lab in New Jerz and a billion people doing the research and studies FOR you really lets you invent tons of stuff.

    My geek god is Nikola Tesla. He is a straight up ballin G.

  13. Monopoly by khalido · · Score: 5, Interesting

    You know, with the advent of services like iTunes, and others like Sony, etc etc. It is quite possible that a monopoly will finally be established by the RIAA. It is so convenient to buy music online from someplace like iTunes that people over the years will shift to buying their music online. Everyone wants their favourite music and all the copyrights are owned by the big labels. Any service to attract users will have to have a contract with the RIAA so they can sell all the golden oldies. I mean, if some service pops up and they just have a bunch of unknowns not many people will buy from them. Its the Bruce Springsteens and the Beatles of the world who move music.
    As for Kazaa and others, hell they'll keep going strong but they will get harder and harder to use as the RIAA cracks down. I do not forsee my parents using Kazaa. They used it, and the fact that half the songs are low quality and u get many different results for a single song.. Well they don't care, all they want is to put in the name of a song and get back ONE result which they KNOW will work. Kazaa and napster to them are not worth the effort of searching and seeing if the songs are good quality and error free. They will however happily use iTunes. And that is why iTunes and similar vendors are going to make it big in the next 5 years as normal poeple start using them and discover how convenient they are. It is not the ubergeeks sitting downloading tons of music from kazaa and irc. Hell they can do that all they want it still won't detract from the ever increasing success of pay music. I predict that in the future, people will be like: Yeah, the smiths are really poor, they still use kazaa!
    Many different online vendors | all having to deal with the RIAA implies a possible monopoly especially with DRM techonology maturing.

    1. Re:Monopoly by MacOS_Rules · · Score: 4, Interesting

      I would like to stongly disagree with you. Everything you say is absolutely correct sans one minor detail: the indies. Steve Jobs/Apple PR have numerously explained that the courting of the big-five was necessary for iTMS to just get off the ground. Now is the time that the indies are courting Apple. Imagine a store, iTMS if you want, where all Artists, be they members of major labels or not, show up on the same page. Combine this with the 30 second previews, and all of a sudden, everyone can hear *any* band; the absolute success of a band will no longer depend on labels (though I'm sure influence will be strong depending who you're signed to).

      If you consider the indies less money hungry (due mostly to their size & efficiency), there's a good chance that those songs/albums offered to you by iTMS will be less expensive than the 99cents/track, $9.99/album. The almighty dollar probably will win out here, generating more interest in the indies.

      If anything, I believe such services as iTMS (if successful) will lead to eventual decentralization of power in the music industry. =)

      --
      If a man's character is to be abused there's nobody like a relative to do the business. -Thackeray, William
  14. Edison is like Ogg Vorbis by Enrico+Pulatzo · · Score: 5, Informative

    His tech was better fidelity, less backing by popular artists, and less accepted by the public. The book "The Invisible Computer" really does a good job of telling Edison's story, I highly suggest you read it.

    Edison's story teaches me that in emerging technology, one must establish a monopoly if there is to be any stability in future markets. If one standard is not a clear winner, the consumer is the clear loser. Consumers will sacrifice quality for market saturation every time.

    1. Re:Edison is like Ogg Vorbis by Amiga+Trombone · · Score: 5, Informative

      His tech was better fidelity, less backing by popular artists, and less accepted by the public. The book "The Invisible Computer" really does a good job of telling Edison's story, I highly suggest you read it.

      Well, that wasn't all there is to the story. Actually, the "phonograph wars" were in some way comparable to the PC vs Mac wars.

      Edison == proprietary, Victor, Columbia, etc, == open standard.

      It is true that Edison's Amberol cylinders and Diamond Disks had better sound quality than the competing flat discs produced by Victor, Columbia, etc.

      Two problems; first, Edison's formats were proprietary, and as noted, Edison was vigorous in enforcing his patents. The only media available was from the Edison Co., and every recording they issued was subject to the personal approval of Edison himself, so consumers were limited to what was available by Edison's personal tastes,as opposed to the plethora of music available to owners of Victor, Columbia, Zonophone, etc. phonographs (technichly gramaphones - a phonograph is a cylinder machine). Also there were a number of 3rd party recording companies that produced records for the gramaphone format that weren't available for the Edison machines. Second, the cylinder format was inconvenient to use, and only allowed for one song to be recorded per record. The plaster core of the Amberol cylinders had a tendancy to swell, making them difficult to mount properly on the mandrel of the phonograph.

      While the technical issues were addressed by the Diamond Disk format, by that time the flat disk (Berliner format) had become the standard, and also, the Diamond Disk was again a proprietary format, available only from Edison.

      There was a reason Edison wasn't as well accepted by popular artists, too. He was a cheapskate. In those days, recording artists weren't paid by royalties, they were paid only for their performance for the recording session. After 1912, rather than pay the artists to record both a version for cylinders and Diamond Disks, Edison would pay the artist only for recording the Diamond Disk master, and then record the cylinder masters from the Diamond Disk. This also accounted for the reduction of quality in cylinder recordings after 1912.

  15. Re:All big corporations are evil!!! by Dun+Malg · · Score: 4, Informative
    Odds are that you are employed by sizeable corporation thus proving that big corporations are indeed evil.

    Pulling statistics out of our ass now, eh? "Odds are" that any given person is not employed by a big corp. According to US Small Business Administration stats for 2000, out of 5.8 million non-farm employer firms, about 100,000 had over 100 employees, and only about 16,000 had over 500 employees. You do the math.

    Now, if you were to say that large corporations wield more power than their minority status should allow, then I'd agree...

    --
    If a job's not worth doing, it's not worth doing right.
  16. Re:Slashdot and the RIIA by SirSlud · · Score: 4, Insightful

    > but about putting food on their families tables and putting their children through college

    Bwuahahahaha. Paramount can do anything it pleases. If it wants to 'risk' releasing the LoTR trilogy under current copyright laws, so be it, but your argument reads like: "They have the right to release something and then claim that no amount of protection is enough." You don't say anything that hasn't been said before, and you nicely sidestep aknolwedging that there IS a point at which the mechnanics of the protection of copyright violate MY right to put food on MY table while still being able to enjoy the fruits of my participation in capitalism.

    Furthure more, of course Joe Blow doesn't know who the RIAA is or hate them. But they *do* hate the results of their actions .. everytime somebody says, "Damnit, why wont my CD play in my computer" or "Why wont this imported CVD play on my DVD player" .. they're opposing the RIAA or MPAA or whoever. Just because the average person doesn't opposed the RIAA doesn't prove that people are not opposed to the consequences of RIAAs actions.

    Your post is yet another 'me too' for the status quo, which is about as hollow and moot a point as one can make.

    Maybe you could tell me at which point you would NOT feel sorry for these people who, as you say have to put another BMW in their driveway or put their kids in a good university. The idea that they have to put food on the table is a joke; they could just go work for Walmart. If some guy on the street is robbing people, just to put food on the table, you tell him to go find another way to do it .. you don't sanction ANY effort to put food on the table. You have to balance those needs versus the needs of society.

    You clearly feel that current copyright laws (tho they've drastically changed over the past 10 years, I can only assume you're referring to current laws) constitutes a valid amount of legal protection to the copyright holder, and thats all you're saying: "I agree with current laws." Woopdedoo. Obviously many people don't, so sit down and shut up if you havn't anything to say beyond the mindnumblingly obvious.

    --
    "Old man yells at systemd"
  17. Big Media Monopolies... by pb · · Score: 4, Interesting

    The "big media monopoly" isn't a myth at all; what you're stating is, however--that the media is owned or controlled by one group. In fact, there are several very large groups that own or control different parts of the media, and they each have their own strengths and weaknesses.

    However, each of these may constitute a local monopoly in a given area of the media or region of the world. And even if any one giant corporation doesn't have a monopoly on a given area of the media or region of the world, that media is most likely still owned by one giant corporation or another, which--ultimately--is what people object to the most.

    It wasn't always like this, you know. There once was a much larger place for small businesses and innovation in radio, music, TV, and newspapers, where people could get in on the ground floor, and offer something new, interesting, and unique. But those days are over, and the sort of power that the big media corporations hold is absolutely stunning. They have more power to censor now than the government ever had.

    Ultimately, some big corporations are evil; it has to do with the amount of power they have, and how power corrupts. If you have lots of small companies around to keep them honest, then you can expect fair competition. But if you don't, well then you have the mess we have now.

    --
    pb Reply or e-mail; don't vaguely moderate.
  18. Re:Poster doesn't know what he's talking about by SirSlud · · Score: 5, Insightful

    You dont know what you're talking about.

    Disclosure: I produce music.

    Big Five labels regularly infringe on each others copyrights, most commonly in not clearly all samples on albums (practically all musicians, like Sarah McLaughlan, use samples, usually to beef up the beat .. you rally do need samples today to supply the kind of sound that consumers demand) .. there is a silent agreement that theres no need to go after the people *in* the monopoly to begin with. Labels only go after groups not in the monopoly to begin with, for increasinly obscure/nonobvious use of copywritten material. Furthurmore, since the RIAA is the group that goes after copyright infringers, they *do* pool their copyrights in the sense that the RIAA does not differentiate between label A being infringed and label B when they go after groups or individuals.

    But the issue about them turning a blind eye to their own infringements and then creating an umbrella group to go after people *not* in the circle is clearly an abuse of power, and does show you how they do pool their IP together. You're simply taking the word pool all too literally to see the bigger picture. Most musicians can see this plain as day.

    --
    "Old man yells at systemd"
  19. Edison by EverDense · · Score: 5, Interesting

    So society is just being subjected to the same old mistakes of the past?

    Why is the name Thomas Edison so revered?

    In 100 years, will all the anti-competitive crimes of Microsoft have been forgotten? and
    will Bill Gates be "remembered" as the "inventor" of so many key parts of computer systems?

    Thomas Edison, like Bill Gates, was first and foremost a businessman. Yet, he gets "remembered"
    as the "inventor" of many things that OTHER people actually discovered.

    The genius of Edison and Gates _was_ in making inventions practicable through their employees.

    --
    http://jesus.everdense.com/
  20. Re:What Media Monopoly? by MourningBlade · · Score: 5, Insightful

    This "big media monopoly" is such a myth. The networks, newspapers, internet sites compete viciously against each other

    Perhaps it is.

    In this case, the article is discussing the issues that can result from a group that pools its patents, creating a "virtual monopoly" - more like an oligopoly, but not really.

    As to the myth of the "big media monopoly", I believe the "monopoly" is more of a statement of frustration regarding the fact that most people get their news from organizations that toe one of two party lines: you have the somewhere-in-the-socialist-field CNN, NYT and company. Then you have the somewhere-in-the-authoritarian-field FoxNews, and company.

    This is probably because most people only accept the first story they hear regarding an issue that does not immediately contradict their preconceptions, and if they hear anything else to the contrary, it's filed under B for Bullshit.

    This leads to homogenous news organizations.

    Also, there are about two major cliques in the news media, and journalists seek approval from one of them. This results in a dichotomous but homogenous sub-culture that pervades news organizations. This culture picks who gets to be a reporter, and who doesn't.

    So, is the "media monopoly" a myth? Yes. There is no one select group that controls and commands the news media. But there certainly is a behavioral system that regulates the news media.

    To clarify what I mean by this, and to show how meaningless yet meaningful the conclusion is, let me compare this situation to Asshole Drivers(tm).

    Asshole Drivers are everywhere. They seem to be a bit different from city to city, but they are everywhere. They cut you off, they slow down traffic because they refuse to merge, they speed up to keep you from merging. We know them by sight.

    What causes there to be so many of them? Hard to say, but I think it's pretty easy to say that a combination of environment and human nature combines to create the self-centered bastards. I don't think they are employed to be that way by a business, nor do I believe that it is a form of religious worship (though some days I have my doubts....).

    If this is true, then Asshole Drivers are not created or controlled by a monopoly, but there certainly is a behavioral system that produces them.

    Now, I'll make this last part quick. Your comment about "I see plenty of choices on tv, radio, and the Internet than ever before."

    Yes, they do compete, but the movie and music companies (who are the ones at issue here) not only compete with one another, but they gang up to destroy smaller companies. You can do that without being controlled by one person or board of directors.

    There are numerous cases (that I wish I had links to so that I could cite them) showing collusion amongst RIAA and MPAA members to oust independents. Strong-arming distribution companies, prevention of advertisement from stores that wish to keep their "special deals." Etc, etc, etc.

    Now, having said all this, let me tell you that I do not believe "all big corporations are evil." I believe that most problems with society right now come about because entities are not equal before the law and law-makers. I do not know how to solve these problems, but I do know they are a problem, and I'd like to hear solutions.

  21. Phonograph history by Animats · · Score: 4, Informative
    There's a long story there, and that article only covers a bit of it.

    Edison's invention of the phonograph was a huge breakthrough. There are no antecedents. He himself said, in later life, that it was the only truly original thing he ever invented.

    There's a complicated story here, involving cylinders vs. records, vertical recording vs. horizontal recording, and some related technical issues. Originally, there were only original recordings. It took a while to figure out how to duplicate records. Early schemes involved one phonograph playing into the recording horns of many others, sort of like VHS duplication with worse generation loss. Then there was a scheme for duplicating via electroplating. It years to find a set of materials that allowed good pressings.

    A more music-industry like issue is that Edison's record company decided that, rather than recording big-name musicians, they'd find less famous ones that sounded just as good. This turned out to be a major marketing mistake. The Victor Talking Machine Company started to gain market share because of this.

    On a related note, the history of the incandescent lamp is usually misunderstood. The way to make an incandescent lamp is to find some material with a high melting point, draw it out into fine wire, make a coil out of it, put it in a bulb with vacuum or inert gases, and power it up. This was known before Edison. Swan made light bulbs before Edison, but he used platinum. All bulbs today use tungsten, which was tough to make into wire. General Electric Research, the successor of Edison's lab, solved that problem. It took years and sizable resources.

    That's not what Edison invented. He invented a way to make low-cost bulbs with carbonized paper filaments. That was a mediocre technology, but way ahead of gas lamps. It was good enough to get the electrical industry going, and it was phased out as soon as tungsten technology worked. Sort of like CP/M or MS-DOS.

  22. yeah by machine+of+god · · Score: 4, Funny

    Edison, that monopolistic bastard.

  23. Support public radio/television by greg_barton · · Score: 4, Interesting

    After Monday, the only impartial media out there will be public radio and television.

    Support it, or it will die.
    Find your local radio or television station and join up.

  24. Read This Part of the Articles by Master+of+Transhuman · · Score: 5, Interesting

    "Many of the early independents were resilient film exhibitors who ventured into production when they found their supply of film threatened. Carl Laemmle (Independent Motion Picture Company or IMP), Harry E. Aitken (Majestic Films), and Adolph Zukor (Famous Players) were among the pioneering independents who protested the Trust, and then laid the foundation for the Hollywood studios. Having entered the business through exhibition, they determined that they liked production better, and got out of the theater business as the nickelodeon boom ended around 1911."

    In other words, the movie studios WERE STARTED BY PIRATES! (i.e., independents who were defying the copyrights and patents of the companies described in the articles).

    --
    Richard Steven Hack - This sig is TOO GODDAMN SHORT TO DO ANYTHING USEFUL WITH! MORONS!
  25. Do you follow the news at all? by jeti · · Score: 4, Informative

    There's no monopoly. However a few companies now
    control the vast majority of media outlets in the US.

    If you'd follow the news, you would have stumbled
    upon some articles mentioning this, because the FCC
    currently plans to further deregulate the market.

    If you'd followed the news even more closely, you'd
    also have read about a little scandal about 2500
    sponsored flight tickets for FCC members.

    After short googling, this article seems to be quite
    informative:
    http://www.corpwatch.org/issu es/PID.jsp?articleid= 6850

  26. Not a fair comparison! by Brian+James+D'Astous · · Score: 5, Insightful

    Rosen is a lot like Thomas Edison... except for the whole part about Edison being a brilliant inventor who applied for intellectual property protection ON HIS OWN WORK. On the contrary, it is quite clear that Rosen is actively working to prevent the development and introduction of innovative new technologies. Bottom line: regardless of his flaws, DO NOT compare Hilary Rosen with Thomas Edison.