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Friday, August 22, 2008

The Newspaper War - a Death Match? T-S says yes.

Posted By Bob Doran @bobbobbob on Fri, Aug 22, 2008 at 10:35 AM

Buried back in the business section of today's Times Standard is a story by Ryan Burns "T-S files unfair business practices lawsuit against The Eureka Reporter."

Specifically the suit filed by T-S/Tri-City parent corp California Newspaper Partnership (a division of Denver-based MediaNews Group Inc.) alleges that the E-R has been selling ads at a cut rate and operating at a loss, "targeting known customers of the Times-Standard and the Tri-City Weekly with the intent of eliminating the papers as competitors."

According to the T-S, "The California Newspaper Partnership estimates losses in advertising revenue of approximately $3 million, while the value of The Times-Standard and the Tri-City Weekly have been depressed by as much as $40 million, according to the complaint."

Burns goes on to draw comparison to a suit in the alt. weekly world: "The San Francisco Bay Guardian successfully brought a similar case against the SF Weekly , the East Bay Express and their owner, New Times Media, alleging illegal advertising practices."