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Zip2, the Palo Alto, Calif., technology firm that works with newspapers on on-line development, is about to announce a new product called Arts & Entertainment. The on-line cultural guide, to focus on movies, restaurants and music, will be a direct competitor for local ad dollars with CitySearch, Microsoft’s Sidewalk and America Online’s Digital City.
The local advertising market is a key battleground between Web and newspaper publishers. Local ad revenues in 1996 totaled about $60 billion, according to Forrester Research.
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