Craigslist Threatens Newspapers

The San Francisco Weekly reports:

Almost by accident, Newmark built one of the Internet's most successful sites, creating a free marketplace for millions that continues to grow around the country and the world. Among the unintended consequences of Craigslist's growth, though, is that it's sucking away significant dollars in classified advertisements from already-struggling newspapers. Bay Area papers alone forfeit at least $50 million annually to Craigslist, losses that contribute to layoffs of dozens of reporters. As fearful publishers cut newsroom jobs, inferior news coverage is the likely outcome. Craigslist's devoted fans are unknowingly exchanging one public service for another -- trading away the quality of their news for a cheaper way to find an apartment. At the same time, Craigslist's executives won't disclose the amount of money they're pulling in.

Creative destruction.