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June 22, 2006 / Toby Dayton

Small Market Daily Newspaper Monopolists Continue To Gouge Customers

A recent research report from Deutsche Bank reported that small-market daily newspaper classifieds are 2-4 times more expensive than similar ads in larger metro markets. Auto classifieds are twice as expensive, real estate classifieds are three times more expensive, and job classifieds almost four times as expensive as same-sized ads in larger metro markets. While labelling daily newspapers anywhere in America ‘monopolists’ is debatable, rural America lags well behind urban and suburban areas in terms of broadband adoption and niche publications have not had as significant an impact in smaller markets as they have in larger markets. On both fronts, however, it is only a matter of time until viable alternatives force daily newspapers in these smaller communities to adapt to a more competitive environment. And unless they take a different approach than their large-market counterparts, their struggles will be just as dramatic when that day arrives.

[tags]Deutsche Bank, Small-Market Papers, Classifieds, Newspaper Pricing, Newspaper Monopolies, Price Gouging, Unfair Pricing, Pricing Strategies, How To Lose Customers, Real-Estate Classifieds, Jobs Classifieds, Auto Classifieds, Niche Publications, Rural America[/tags]