December 28, 2004

ARE THE NEW MEDIA COSTING THE OLD MEDIA MONEY? Well, quite possibly:

Free community Web site Craigslist has cost San Francisco Bay Area newspapers up to $65 million in employment advertising revenue, according to a report released Monday.

Craigslist, which generates more than 1 billion page-views each month, also has cost the newspapers millions more in merchandise and real estate advertising, and has damaged other traditional classified advertising businesses, according to a report published by Classified Intelligence.

Classified advertising is the big moneymaker for newspapers, and it’s the aspect most readily undercut by the Internet. But it’s only one of many such vulnerabilities

UPDATE: And there’s not much sympathy for ‘em. Reader Greg Kane emails:

Boo hoo for the newspapers with their monopoly prices.

This year a three line ad in the Denver Post cost me $108 per week. How
come the MSM is only outraged at other peoples’ greed?

Beats me.