Wednesday, May 18, 2016

Craig Newmark: The man who invested Craigslist and decimated the Newspaper classified ads industry

EDITOR AND PUBLISHER

By: Tim Gallagher

The man who decimated the business model of the newspaper industry worked for 17 years as a programmer for IBM in New Jersey. Craig Newmark had no newspaper experience when he launched Craigslist, which, for all intents and purposes, destroyed newspaper classified advertising.
In 100 years, when the history—let’s hope it is not an obituary—of the American newspaper industry is written, the historians will say that our advantages slid away because we failed to see how the World Wide Web created a disruptive tool that anyone smart enough could use to swipe our business. Craig Newmark is Example Number One. His photo will be at the start of the chapter.

For the record, I have heard Newmark speak and he truly had no intention of killing our classified business. It was our industry’s failure to adapt that allowed so much business to vaporize. It is not the only example. I worked for E.W. Scripps when a mid-level corporate executive named Ken Lowe (who worked in radio) developed a concept for a cable television network “about grass growing and paint drying.” It was called HGTV and it should have been owned by Meredith Corp., which owned the magazine Better Homes and Gardens. HGTV has become a mega-hit across the globe, but understand the lesson—a radio guy invented a cable channel to own a category that had been dominated by a magazine.

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