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Post may launch free newspaper

Justice Department OKs creation of daily to woo 18-34 market

David Milstead, Rocky Mountain News

Published December 9, 2005 at midnight

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The Denver Post on Thursday cleared the first hurdle to launch a free daily newspaper, an option being considered in an effort to attract younger readers.

The U.S. Department of Justice issued its blessing to the Post's owner, MediaNews Group, along with Rocky Mountain News parent E.W. Scripps, and their joint venture, the Denver Newspaper Agency.

The federal government must weigh in because the papers are part of a Joint Operating Agreement, an antitrust exemption that allows two newspapers to combine their business operations in the name of preserving independent editorial voices.

The Justice Department said that as proposed the free newspaper would not be an antitrust violation.

"The creation of a new edition likely will . . . create greater choice for both readers and advertisers in the Denver metropolitan area," attorney Thomas O. Barnett wrote on behalf of the Justice Department.

No timetable was given for the free newspaper, which would be produced by the Post and rely in part on Post content. It would most likely have a different masthead, graphics and design than the Post, the application said.

MediaNews Group CEO Dean Singleton, Denver Newspaper Agency CEO Kirk MacDonald and Scripps Executive Vice President Rich -Boehne all said Thursday there is nothing on the drawing board.

A free daily in Denver would compete with another free daily, the Denver Daily News, and other possible competitors, including Denver billionaire Phil Anschutz.

But Singleton insisted the newspaper is not aimed at circumventing Anschutz's ambitious plans.

Anschutz purchased the dying San Francisco Examiner in 2004, then trademarked the name in 63 cities, including Denver. Anschutz's newspaper group launched a Wash- ington, D.C., edition earlier this year and plans a Baltimore paper in 2006.

Singleton said the Denver papers are being "proactive" in seeking young readers after studying youth-oriented efforts made by newspapers in Chicago, Dallas and Washington.

"We think it's intriguing," he said. "They've been able to pick up a younger reader that does not read our newspapers."

Anschutz spokesman Jim Monaghan declined to comment Thursday.

Scripps' Boehne said the application was to "seek clarity."

"The partners are saying in this environment, with so much competition, and so many voices in a community, so many demographics, do we have the freedom to address these types of opportunities and challenges?' "

The application letter lays out the case: Younger readers from the ages of 18 to 34 "resist purchasing paid distribution dailies because they are accustomed to getting their news free from the Internet and television."

Paid newspapers have "struggled with limited success to reach this audience, which has demographic characteristics of great interest to many advertisers."

A small group of investors launched The Denver Daily News in 2001, saying it planned to distribute 1,000 copies, primarily in LoDo.

Now, the newspaper says on its Web site that it circulates 12,000 papers in Denver, along the I-25 corridor, and in Littleton, Aurora and Englewood.

Its slogan: "Informative, entertaining, engaging . . . and FREE."

Denver Daily News Publisher Kristie Hannon said a free daily "is a different type of publication altogether, especially from what they do." But, "the way things have been going in the newspaper industry, it doesn't surprise me - they're covering all the bases."

A free edition of The Denver Post would be the latest niche offering from the Denver Newspaper Agency and its owners. The Rocky Mountain News launched a community- news Web site, YourHub.com, in May.

It now has community-specific sites for 42 metro communities, as well as 15 zoned print sections delivered to home-delivery customers of the News and Post in the seven- county Denver area.

Revenue from such projects is split 50-50 by the owners, as are the profits from the two dailies.

David Milstead is finance editor of the Rocky Mountain News. He can be reached at 303-892-2648 or .