All started to fall apart in 2003, when classified advertisers started to shift to Craigslist. The online service revenues took off like a rocket, but instead of being the newspapers' billions of dollars, Craigslist can only claim millions. The moral of the story is that internet, with all of its efficiency and freebees, might eventually make a dent in our countries GDP. What's do you think?
Monday, August 10, 2009
Can internet shrink GDP?
Recently, I've been lauding Craigslist's effectiveness on this blog; interestingly enough, this (mostly) free service bears a significant responsibility in the American newspaper demise. From my own research, in 2000, classified advertising accounted for nearly $20 billion, or about 40 percent, of the U.S. newspaper industry's revenue. While it was still pegged at $16 billion in 2005, it's likely to have plummeted to an an estimated $5 billion or so by the end of 2009. 
All started to fall apart in 2003, when classified advertisers started to shift to Craigslist. The online service revenues took off like a rocket, but instead of being the newspapers' billions of dollars, Craigslist can only claim millions. The moral of the story is that internet, with all of its efficiency and freebees, might eventually make a dent in our countries GDP. What's do you think?
All started to fall apart in 2003, when classified advertisers started to shift to Craigslist. The online service revenues took off like a rocket, but instead of being the newspapers' billions of dollars, Craigslist can only claim millions. The moral of the story is that internet, with all of its efficiency and freebees, might eventually make a dent in our countries GDP. What's do you think?
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