8 Newspaper Groups Form Venture for On-Line Services

Aiming to bolster the newspaper industry’s presence in cyberspace, eight of the nation’s leading newspaper firms said Wednesday that they are forming a new company to support the development of local on-line services and to link them into a national network.

Dubbed New Century Network, the venture plans to provide consulting assistance and software to small newspapers that might otherwise lack the means to create their own electronic services. Any daily newspaper in the United States will be eligible to pay an affiliation fee and receive NCN’s services.

In addition, the large member newspapers that already have on-line services will develop ways to connect their services, primarily by utilizing the Internet’s World Wide Web.

That will eventually enable the newspapers to sell national classified advertising in an electronic form, or to market home shopping or entertainment services on a nationwide basis.

“We think this will add value to our local newspaper on-line services,” said Peter Winter, vice president of market development at Cox Newspapers, who will head up the venture until a chief executive is hired. “With their experience in developing interactive content, the founders can really be of help to a local newspaper just entering this business.”

In addition to Cox, the other participants are Times Mirror Co., parent company of the Los Angeles Times; Advance Publications Inc.; Gannett Co.; Hearst Corp.; Knight-Ridder Inc.; Tribune Co. and Washington Post Co.

Together the companies own 185 daily newspapers, including many of the nation’s largest. Each founding member is contributing $1 million to the venture, which will initially employ 10 people.