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tracing and rendering, it is likely to be more cost effective to rent time on a distributed application provided by a specialist application service provider and running on remote server farms, rather than for each production house to buy the necessary equipment and have it sit idle for much of the time. There has been too much investment in industrial-age television production facilities to make the switch to low-cost, high-value streaming media production overnight. The change in production techniques will, more than likely, be led by guerrilla outfits: small production companies willing to experiment with new technologies to produce their product. There are already entertainment news crews making streaming media reports with nothing more than DV cameras and laptop computers. With their particular production method, they can cut the story in the back of the Jeep on the way back to the office. This not only gives them cost advantages, but their reports are also on air (i.e., on the Web) faster than those of many other electronic news gathering operations. For streaming media to make money, production techniques like these will be required.

Laws, especially those surrounding digital copyrights, change slowly and global harmonization takes even longer. Unfortunately, the lack of globally enforceable digital rights protection threatens the viability of streaming media as a profitable industry. It is not clear how these issues will be solved, since some nation states do not even respect patents, let alone digital copyrights. The solution would require intellectual property treaties to be signed, but there is little evidence that this will happen soon. Digital copyrights could be the issue that prevents streaming media from ever achieving its commercial potential. The only reason to suppose that the copyrights issue might not be a severe threat is the experience software companies have had with digital piracy, the experience of the music industry with illegally produced CDs, and Hollywood s losses due to DVD and video counterfeiting. All these industries currently deal with illegal copying as a cost of doing business. In fact, honest media consumers effectively subsidize the dishonest. Whether the presence of streaming media technology will worsen this situation remains to be seen. However, there is a perception that streaming media will encourage disastrous levels of illegal digital copying. Content owners are working with legislators and law enforcement agencies to clamp down on the pirates. Indeed the US government

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Citigroup s market equity of $182 billion makes it the number-one financial services company in the world That market value is 126 times earnings of $148 billion Citigroup pays an annual dividend of $072 per share It actively repurchases shares in the open market and repurchased 87 million shares in 2002 Its five-year price history is shown in Exhibit 8-1 Citigroup s stock has recently been under a cloud due to concerns regarding its relationship with Enron and a series of investor suits, and state and Federal legal actions against Salomon Smith Barney relating to underwriting activities in the telecom sector That cloud lifted on December 20, 2002, when Salomon agreed to pay $300 million in fines to the SEC and state securities regulators to settle an investigation into the behavior of some of its stock research analysts.

Stage 2: Internal Integration Stage 1: Functional Focus A companywide process and data Supply chain model exists and is processes and measured at data ows are company, process, well documented and diagnostic and understood levels Resources are managed at the department level and performance is measured at the functional level Resources are managed both functionally and cross-functionally

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recently announced that the lack of effective digital rights management solutions is delaying the uptake of broadband Internet connections, and has threatened to impose a solution on the industry, if the industry does not work to agree to one. This is an indication of how seriously the government of the US, for example, takes the issue of digital copyrights and how strategically vital it deems broadband connectivity.

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