This. Years ago it was obvious to most newspapers that paid subscribers are their lifeline. Advertisers come and go, daily sales come and go, but long-period subscribers keep you afloat. Somehow, when the respected newspapers moved to the web, they forgot that, and kept pumping ads like crazy. This, in essence, moved the sense of their product from quality content to clickable content - these two don't mix. Consequen…
Back in the day, a typical newspaper made about 80% of it's revenue from advertisers (including the classifieds), and about 80% of its costs were printing & distribution. So free Internet distribution should have been 80% of the revenue at 20% of the cost... :)
Craigslist could probably pull in multiple billions a year in profit and 10 figures in revenue if they went for revenue a lot more. Company value would probably be close to eBay level.