The Media is waking up to Craigslist:

Tradional media continue to grapple with new media. Last night’s episode of Nightline had a segment on Craig Newmark and his Internet-classifieds Website. While the show devoted some time to smiling customers, it mostly focused on the negative aspects of Craigslist. Besides a quick mention of the shady nature of the Casual Encounter section of Craigslist, there was the complaint that the site is hurting the newspaper business, stealing away those who would buy classified ads. According to Nightline, this shift has created an annual loss of $50 million in San Francisco alone. Newmark retorted that his site is serving customers in a way that newspaper classifieds can’t.

So, what’s the problem exactly?