As expected, Village Voice Media and SF Weekly filed an appeal to last year's decision in the Guardian's predatory pricing suit this week in the California Court of Appeal. "With this appeal, judicial error, attorney contrivance, expert witness puffery, juror confusion, and statutory imprecision are now cast in the edifying light of reason and clarity," VVM executive editor Michael Lacey says. The Guardian's Tim Redmond says nothing in VVM's appeal is new to them. "We're confident we'll prevail in the appeal, as we did at the trial court level," he tells AAN News.
Eastbay Express Publishing LP, an entity controlled by former Express owner Village Voice Media, has filed suit against two of the alt-weekly's current owners, Hal Brody and Stephen Buel, claiming they owe $500,000 under the terms of the 2007 deal in which the paper was sold. Brody admits they owe the money but says their debt is exceeded by the damage they suffered as a result of VVM's violation of a non-compete clause included in the original agreement. "The SF Weekly [also owned by VVM] is not supposed to solicit our advertisers in Alameda and Contra Costa, and they've been doing it, over and over," Brody tells the San Francisco Bay Guardian. "We have massive claims against them for violating those terms." But VVM's attorney disagrees: "(VVM) is not aware that it has violated the terms of any its agreements with the current publisher of the East Bay Express or with Mr. Brody or Mr. Buel," Randall S. Farrimond says. "We believe that any judge or jury who reviews the facts of this matter will conclude that Mr. Brody and Mr. Buel owe us the amounts stated in our complaint." More from the Express.
In a Q&A with The Future Buzz, Village Voice Media social media strategist John Boitnott talks about how VVM is merging traditional journalism work with social media work. "What we are realizing at [VVM] is that one's effectiveness as a journalist now may depend to some degree on your social media prowess," he says. "It's absolutely a revolutionary concept -- and one that many old schoolers may scoff at or ignore."
VVM points out that with John Dickerson of the Phoenix New Times' win this week, the company's writers have racked up four Livingston Awards in the past decade.
In a blog post last Friday, Craigslist CEO Jim Buckmaster complained that politicians are attacking Craigslist for adult ads while ignoring Village Voice Media and other media outlets that run the same ads, because they have a "need for positive stories and campaign endorsements from those very same newspapers." VVM says it empathizes with Craigslist but finds much to be desired in the company's response. "They have a number of moralistic state Attorneys General threatening them over their adult ads, and a raft of bad press following the terrible tragedy in Boston that the company is admittedly in no way responsible for," VVM says in a press release. "But, the manner in which Buckmaster is responding to this pressure -- by disingenuously lashing out at competitors and caving to political pressure -- is inexcusable, and displays a remarkable lack of sound judgment."
Village Voice Media new media director Bill Jensen says 40 percent of the company's pageviews are coming from the blogs on the newspapers' sites, up from 20 percent a year ago. He also tells TechCrunch VVM is on track to bring in $20 million in online revenues this year, nearly double from 2008. This figure, however, still represents barely more than 10 percent of VVM's revenues.
While last year's verdict in favor of the San Francisco Bay Guardian in its predatory pricing lawsuit against SF Weekly and Village Voice Media is being appealed, the Guardian claims VVM is ducking its debts and hiding its assets in an effort not to pay the $15.6 million it owes in damages. VVM executive editor Michael Lacey says that's not correct. "The case is on appeal. You are not entitled to a penny," he writes in a blog post.
During an interview before his SXSW keynote address with Wired editor Chris Anderson, Kawasaki says that he's been told that Village Voice Media papers are "doing quite well." The web publishing entrepreneur uses that example to say he doesn't believe all newspapers face the decision to charge for content or go under. "It's something to look at. It can be done," he says. "I don't think it's a situation where everything is going to die."
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