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.
"These free periodicals are causing me to fill more time with reading (which has no cost) and less time with watching television or playing a computer game (which costs electricity, cable, internet, etc.)," writes the penny-pinching proprietor of the Are You Rich? blog. (S)he totals the amount of money saved per year by doing so at $5. "It doesn't seem like much, but consider another factor: the local alternative newspaper often has passionate writers and detailed community event listings. I've discovered several free events that I've attended that, without the alternative papers, I would have never been aware of them." That point was echoed in this weekend's New York Times, which had a piece looking at ways that New Yorkers are scaling back spending as they prepare for an economic downturn. One 29-year-old teacher "has reduced her spending ... [by] only buying paper goods on sale, tempering her hair product demands and scouring the Village Voice for local artists playing free concerts."
Lawyers and economists from the U.S. Justice Department are investigating if the Cleveland Free Times can "be a viable business in the current media climate" in the city, according to the Plain Dealer. The Free Times was closed in 2002 when its owner, Village Voice Media, agreed to shutter it, giving Cleveland's other alt-weekly, the New Times-owned Scene, a monopoly. (The two parent companies merged in 2005.) The Justice Dept. investigated that deal and forced the sale of Free Times to a group of investors. Former Free Times editor David Eden tells the Plain Dealer he was recently questioned by lawyers from Justice about whether or not he thought the paper could be turned around. He says he told them that Cleveland needs the paper's independent voice and he hopes it is sold to a local group rather than being bought out by the competition and closed. "It feels like deja vu all over again," he says.
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.
Late last week, the art blog Modern Art Notes raised questions about Christian Viveros-Faune's editorial independence, noting that he was involved in organizing two major commercial art fairs at the same time he was the Voice's art critic. The blog argued that he should either resign from the fairs, or the Voice should stop publishing him, and the flap lit up the blogosphere on Friday. On Saturday, Voice editor Tony Ortega explained to readers that, in light of "an appearance of conflict," Viveros-Faune would no longer be writing for the paper.
The Gay and Lesbian Alliance Against Defamation announced the nominees for their annual awards on Sunday, and the Weekly's Lauren Smiley was among those nominated. Her story, "Girl/Boy Interrupted," is in the running in the "newspaper article" category, alongside two pieces from the New York Times, one from the L.A. Times and another from the St. Petersburg Times. The Weekly notes that the story was the first long-form story Smiley wrote as a Village Voice Media fellow. Winners will be announced in March.
In court this week, a Guardian witness disavowed a key piece of evidence -- AAN's financial standards report -- that the paper was using to prove its predatory pricing charge against SF Weekly, the East Bay Express and Village Voice Media. The witness backed away from the AAN report after the Weekly's attorney's produced an affidavit from the woman who had compiled it asserting that it was unaudited and self-reported, "rendering it meaningless as a measure of financial performance," the Weekly reports. After considering this and motions from both parties on Wednesday and Thursday, the Weekly says the judge "ultimately concluded that the Weekly deserved additional time to respond, a decision which could delay the long-awaited trial." Naturally, the Guardian sees this week's developments a little differently. "If this is how the SF Weekly and the VVM guys from Phoenix are going to cover the trial, we're going to have to spend a lot of time correcting the record," Guardian executive editor Tim Redmond writes. He says that the Weekly's attorneys had "tried desperately" to keep the Guardian's witness from taking the stand at all, and sees the disavowal of the AAN financial data as inconsequential. The witness had developed two scenarios to show how much money the Guardian had lost, and not being allowed to use the AAN data, he will just rely on the other standards instead, according to Redmond.
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