The predatory pricing trial resumed yesterday after taking Tuesday off. Village Voice Media chief financial officer Keating finished his testimony, and three more witnesses were called: Jennifer Vernon from Live Nation (formerly Clear Channel Concerts); James Higginbotham of International Demographics, the company that runs Media Audit; and the SF Weekly's expert witness, economics professor Joseph P. Kalt. For more details, check out reports from the Guardian and the Weekly.
Village Voice Media chief financial officer Jed Brunst and former SF Weekly publisher Chris Keating took the stand yesterday in the predatory-pricing trial. In its wrap-up, the SF Weekly focuses on the part of Brunst's testimony that offered "evidence that Weekly rates have been going up over time," not down. The Bay Guardian, on the other hand, focuses on the "huge amounts of cash" the Weekly and the East Bay Express had lost under New Times/VVM control. The trial takes a day off today for Lincoln's Birthday, and will resume on Wednesday.
On Friday, Village Voice Media executive editor Michael Lacey testified in the predatory pricing trial. The Guardian says Lacey "had some trouble answering some key questions" about SF Weekly's ad sales and a 1995 meeting where he met the Weekly staff shortly after purchasing the paper. The Weekly says Lacey's testimony illustrated that his and Bruce Brugmann's "editorial philosophies were worlds apart," and notes that Lacey's testimony showed he is not involved in the business side of VVM's affairs. This is key because of comments he made about being "the only game in town," which the Guardian is using as evidence he wanted to drive them out of business. Patricia Calhoun, editor of Denver's Westword, which New Times bought in 1983, also testified on Friday, and according to the Weekly, she "got on and off the stand in only about twenty minutes, a timely performance that drew appreciative nods from jurors." The trial resumes today.
The Bay Guardian says Sandy Lange provided the jury with a primer on "how predatory pricing by a big chain works." SF Weekly says she crumbled under cross-examination.
With the testimony of San Francisco Bay Guardian editor and publisher Bruce Brugmann concluded, drama in the courtroom subsided on Wednesday as Guardian attorneys read depositions from VVM chief financial officer Jed Brunst and former SF Weekly publisher Chris Keating. The SF Weekly's dispatch is here, and the Bay Guardian's take is here.
Although their dispatches read as if they're reporting from two different trials, both SF Weekly and the Bay Guardian agree that the temperature in the courtroom rose on Tuesday when the Bay Guardian's editor and publisher, Bruce Brugmann, took the stand. According to VVM's Andy Van De Voorde, Brugmann "exploded on the stand ... pounding his hand on the witness box, raising his voice, and growing red-faced." But Bay Guardian executive editor Tim Redmond says his boss "stood up remarkably well under a cross-examination" and "generally made the SF Weekly's lawyer look silly." The Bay Guardian filed a more extensive report on the trial here, while SF Weekly posted dispatches following the action on Friday and Monday.
Former Guardian ad director Jody Colley continued her testimony in that paper's predatory pricing trial against SF Weekly and Village Voice Media yesterday, as did Jennifer Lopez, a former ad sales rep of both papers. Colley's testimony centered on just how many accounts the Guardian may have lost due to alleged ad-price undercutting by the Weekly, and also on the challenges she faces in trying to increase the "unacceptably low prices" that she inherited from Village Voice Media when she took over as publisher of the East Bay Express, which was sold by VVM to by a group of investors in May 2007 and is also named in the suit. The trial resumes this morning.
Executive editor Tim Redmond and former ad director Jody Colley were called as witnesses yesterday in the predatory pricing trial against the Weekly and Village Voice Media. Redmond's testimony centered on local ownership and the crucial matter of editorial spending. The Guardian is arguing that the Weekly was trying to put them out of business because it refused to cut editorial spending while it lost money overall. On the other hand, the Weekly reports that Redmond said he has had to struggle with laying off writers and editors over the past few years. "If [ad] revenue goes down, I have to cut costs. The Weekly editors don't have to meet that kind of budget; they can just get more money from headquarters," Redmond writes on the Guardian's blog. Colley, who is now the publisher of the East Bay Express, testified mostly about the Weekly's dealings with concert promoter Billy Graham Presents, which the Guardian claims is an example of illegal below-cost pricing. Her testimony will continue when the trial resumes this morning.
Yesterday, both sides in the predatory-pricing suit filed by the Guardian against SF Weekly and Village Voice Media gave their opening arguments, and Guardian associate publisher Jean Dibble took the stand. The local website Beyond Chron lays out the plaintiff's burden: "The Guardian will have to prove four things: (1) the SF Weekly sold ads below cost; (2) the Guardian was harmed; (3) the harm was due in large part to the fact that the Weekly sold ads below cost; and (4) the SF Weekly's purpose in selling the ads below cost was to cause harm to the Guardian." The Guardian's attorney argued that the Weekly has lost money for 11 straight years (a claim the defendants contest) as a direct result of selling ads below cost, and that it was selling at that rate with the express intent of damaging the Guardian. "If you're not trying to make a profit, what are you trying to do?," the Guardian reports he asked the jury. The Weekly's attorney argued that, yes, the paper has been selling ads below cost, but to cope with a tough regional economy and competition from the internet, not to put its competitor out of business. "The reason we were selling below cost is because that is all we could get for the ads," he told the jury, according to the Weekly's dispatch. The trial resumes this morning.
Yesterday, Judge Marla Miller denied Village Voice Media and SF Weekly's request to delay the predatory-pricing trial in order to further review some documents, and jury selection will get underway today at 8 am, according to reports in the Weekly and the Guardian. With jury selection expected to last two days, the judge has scheduled opening arguments for Monday.
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