(NEW YORK) -- A new study from New York University and Harvard Business School found that Craigslist has taken as much as $5 billion from local newspapers by providing online classified advertising services.
The report was headed by Robert Seamans, an assistant professor of management and organizations at NYU's Stern School of Business and Feng Zhu of Harvard Business School. The study found that between 2000 and 2007, classified ad buyers saved $5 billion due to Craigslist's entry into the market, Forbes said.
Meanwhile, those who would previously have posted classified ads in local newspapers now veer towards the free online classifieds of Craigslist.
According to Forbes, the study did not take into account newspapers such as the New York Times, Wall Street Journal or USA Today, in order to maintain a "homogenous sample" of local newspapers reliant on classified advertising.
As a result of the drive towards Craigslist, the researchers found that newspapers dropped the rates charged for placing classified ads and increased both their subscription and newsstand costs.
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