Incorporated: 1966 as Boston After Dark
NAIC: 511110 Newspaper Publishers; 515112 Radio Stations; 561421 Telephone Answering Services; 541613 Marketing Consulting Services; 323110 Commercial Lithographic Printing
SIC: 2711 Newspapers; 4832 Radio Broadcasting Stations; 2752 Commercial Printing - Lithographic
The Phoenix Media/Communications Group publishes three alternative newsweeklies and operates a small network of radio stations in New England, and also provides advertisement-linked voice mail and text messaging services to more than 700 newspapers and other clients in the United States and Europe. The firm publishes (in both print and online form) the free weekly Boston Phoenix and offshoots the Providence Phoenix in Rhode Island and the Portland Phoenix in Maine, along with Stuff@night, a biweekly Boston nightlife magazine, as well as program guides and yearbooks for major area sports teams, events, and music series. The company's WFNX Radio Network includes three FM stations that broascast rock music in Boston and southern New Hampshire, while its People2People Group/Tele-Publishing, International subsidiary is the largest provider of personal ad voice mail services to the publishing industry. Another unit, MassWeb Printing, Inc., prints the firm's publications as well as other regional newspapers.
Beginnings
The Phoenix Media/Communications Group (PM/CG) traces its founding to March 1966, when Stephen Mindich launched a four-page arts and entertainment weekly called Boston After Dark. In 1972 Mindich paid $320,000 to acquire the Cambridge Phoenix, a 50,000-circulation newsweekly that had been founded in 1969 to offer an alternative take on the news in the style of New York's well-known Village Voice. Just before the sale the Phoenix's employees had gone on strike over the firing of a popular editor, and afterward many quit to found a rival called the Real Paper.
Mindich's two publications were soon combined to form the Boston Phoenix, whose circulation grew to more than 100,000 by the mid-1970s, about half of which was paid subscriptions and half of which were free copies given away to college students. The paper's advertisers had grown beyond such alternative newsweekly staples as record and waterbed shops to include such mainstream businesses as the Jordan Marsh department store. A growing advertising category was the so-called personal ads, in which single people sought romance. In the post-sexual revolution 1970s some of these had become suggestive enough that a few suburban stores refused to stock the paper, while others took issue with its use of four-letter words and occasionally controversial content. By this time issues of the Phoenix were up to 200 pages long.
While many similar papers in other markets struggled to turn a profit, Boston's market did well, a fact that was attributed to the large number of youthful residents who were drawn by 50 colleges located within a 50-mile radius. The Phoenix was also gaining a reputation for quality reporting, and many readers bought it to learn about local issues that were not covered as thoroughly in the daily Globe and Herald American. Other popular features of the paper were its extensive arts and entertainment listings and reviews, plus "lifestyle" stories that gave readers tips on cooking or buying electronic equipment. In the late 1970s it pulled ahead of the Real Paper in readership, and in 1981 the latter folded and sold its list of 10,000 subscribers to Mindich.
Debut of WFNX-FM: 1983
In 1983 the Phoenix bought a small Lynn, Massachusetts, radio station called WLYN-FM, renamed it WFNX, and began broadcasting a blend of music and talk which made use of the paper's writers. WFNX was one of the first commercial stations in the United States to play so-called alternative rock and new wave music groups as its main format, and it developed a loyal following among college students and other young adults in the area.
By 1986 the Phoenix was grossing an estimated $10 million per year and had circulation of about 125,000, mostly copies purchased at $1.50 per issue. The firm boasted that its typical reader was single, childless, professional, and 30 years of age, a highly appealing demographic for advertisers.
In April 1987 the paper's publication date was moved to Friday and its entertainment and nightlife coverage were expanded. Radio ads and posters in bus and subway stations heralded the change with the tagline, "By Friday You Need the Phoenix." A month later the paper received national media attention when, in response to the growing AIDS crisis, copies included a safe sex guide and a condom donated by Trojan. The Phoenix was also controversial locally for running ads for "escort services," some of which were shut down and charged with offering sex for money, though the paper denied knowledge of such activities when the ads were placed.
In the summer of 1988 Mindich bought the NewPaper of Providence, Rhode Island, a ten-year-old alternative weekly with free circulation of about 25,000. It was subsequently expanded from 40 to 56 pages and began to share content and advertising with the Phoenix, with its printing taken over by MassWeb Printing, a firm which Mindich had earlier acquired.
Beginning of Personal Ad Voice Mail: 1989
In 1988 Mindich formed a subsidiary called Tele-Publishing, Inc., to develop a way to link personal ads to voice mail via computer. Introduced the following year, the new service used fee-based "976" numbers at a cost to users of 99 cents per minute, with the firm keeping part of the proceeds and the rest going to the phone company. During 1989 a number of Boston Phoenix staffers and the paper's ten-year editor, Richard Gaines, quit, with Gaines replaced by Arts Editor Peter Kadzis.
The firm's new voice mail option proved popular and helped boost sales of personal ads, which by 1991 had more than doubled to between 500 and 700 per week, with over 80 percent using the phone service. As it took off, Tele-Publishing began licensing its system to newspapers and other clients around the United States, signing up more than five dozen within two years. By this time Mindich's company had become known as The Phoenix Media/Communications Group (PM/CG).
In early 1993 PM/CG launched a new weekly paper in Worcester, Massachusetts, called the Worcester Phoenix. It would share editorial content and ads with its successful Boston and Providence siblings, with 40,000 free copies distributed at 500 locations in an area that was home to 13 colleges and more than 42,000 students. With the addition of the new spinoff, the company renamed its Rhode Island paper the Phoenix as well. The expansion-minded Mindich had earlier failed in bids to buy the established weekly Worcester Magazine, as well as New York's famed Village Voice and a New Hampshire TV station.
Over the years the Boston Phoenix had won many awards from such organizations as the New England Press Association, and in 1994 classical music critic Lloyd Schwartz received a Pulitzer Prize. The firm was also publishing a free entertainment biweekly called Stuff in Boston. In late 1995 the Phoenix went online.
Tele-Publishing Adds U.K. Branch: 1996
During its first eight years Tele-Publishing, Inc., had come to provide its patented voice mail system to 350 publications in the United States and Canada (ranging from the Boston Herald to USA Today), and in March 1996 it formed a unit called Tele-Publishing U.K. to offer similar services in Great Britain. Noting a strong interest in mobile telephone text messaging there, the firm soon began to offer text responses to personal ads via cellphones, and also launched an online dating site. Over time the operation would provide voice mail services for newspapers with more than 40 percent of total U.K. circulation, largely by taking over existing companies. The business subsequently evolved to include classified ads, tele-voting, and direct response advertising.
In 1997 PM/CG launched a free twice-monthly nightlife publication called Stuff@night, with 80,000 copies distributed to restaurants, clubs, stores, and other locations. Focusing on interviews, photos, and stories about nightlife but eschewing news and arts reviews, it would compete with upstart the Improper Bostonian, whose editor the firm soon lured away.
Seeking to boost the synergy between its print and broadcasting operations, in 1999 PM/CG bought a second radio station in Sanford, Maine. WCDQ-FM was renamed WPHX to simulcast the programming of WFNX, while an AM station that was included in the package retained its talk-radio format. The stations served Portland, Maine, and Portsmouth, New Hampshire.
In the fall of 1999 PM/CG launched a new alternative weekly in Maine called the Portland Phoenix, which would share editorial content and ads with the other Phoenixes. The company's weekly papers had combined circulation of more than 220,000, with the Boston Phoenix sometimes running to 440 pages and 11 sections.
In late 1999 the firm bought WNHQ-FM in Manchester, New Hampshire (later renamed WFEX), which operated on the same frequency as WPHX-FM and reached the outer Boston suburbs. In early 2000 the company also cut a deal to buy WWRX-FM in Providence, Rhode Island, from Clear Channel. Both would broadcast the same content as WFNX with the addition of some local news. Meanwhile, the firm's publishing operations had grown to include production of programs for sports and music events, while Tele-Publishing International served 600 clients around the United States and had relaunched its web presence as People2people.com.
Free Distribution of Boston Phoenix Beginning in 2000
In March 2000 the firm began distributing the Boston Phoenix for free, citing reduced opportunities for paid distribution and competition from online news and information sources. Circulation had fallen to 105,000, though it was still the largest weekly of its type in the region. During the year the company's mobile phone marketing unit also began offering a variety of additional services in the United States and United Kingdom.
In the spring of 2001 PM/CG shut down the Worcester Phoenix in the face of declining advertising revenues. The company also named a new top executive for its radio unit, who hired an irreverent male comedy duo for afternoon "drive-time" and shifted its music mix from alternative to mainstream hard rock and rap/rock in a bid to reach a younger male demographic.
In early 2002 Tele-Publishing International acquired the clients of NVS Interactive Media, making it the largest provider of personal ad voice mail services in the United States, with some two-thirds of the market. Its foreign operations had expanded to Spain, Italy, Germany, and France.
In June 2002 the Boston Phoenix was the focus of national media attention after it printed two photos from a video of the terrorist killing of Wall Street Journal reporter Daniel Pearl (who had once written for the Phoenix), one of which showed his severed head. The decision was condemned by many observers and the Pearl family, but publisher Mindich defended it, claiming the image was necessary to tell the whole story of what had happened. A link to the video had earlier appeared on the paper's web site.
In 2003 People2People.com formed a marketing alliance with Match.com, and PM/CG shifted its radio network back to the alternative rock music format, mixing in 1980s and 1990s "oldies" and dropping the more mainstream hard rock of the last two years. In 2004 the firm bought FACE Magazine, a monthly music publication based in Portland, Maine, that had been distributed with the now-defunct Maine Weekly, and sold WWRX-FM of Rhode Island to broadcast giant Entercom for $14.5 million.
In December 2004 a jury awarded a former prosecuting attorney $950,000 in a libel suit against the Phoenix, which had published an article in early 2003 alleging he was a child molester. The paper immediately appealed the decision.
Papers, Web Sites Receive Facelift in 2005
In late 2004 Boston Phoenix competitor the Weekly Dig was purchased by the owners of Boston and Philadelphia magazines, who vowed to aggressively boost its circulation, at the same time that the paper was facing a new rival called Metro Boston, a free "commuter paper" that was distributed at bus and subway stations and partly backed by Globe publisher The New York Times Co. In response to such challenges, in early 2005 PM/CG launched redesigned versions of its papers and associated web sites, switching the print versions to a nonfolded tabloid format after focus group studies showed younger readers preferred it. The upgrade cost $1.2 million, and included a new logo and more color graphics that helped better unify the print and online versions. The Phoenix's print run was also increased from 109,000 to 150,000 copies at this time. The firm had long offered advertisers packages that combined print, web, and broadcast exposure, and Internet ad sales were growing the fastest, though there were many competitors in the latter area including Craigslist.com.
In August 2005 PM/CG bought a 35 percent stake in El Planeta, the Boston area's leading Spanish-language weekly whose 40,000 free copies were distributed in Massachusetts, Rhode Island, and New Hampshire. Published by Hispanic News Press, it was printed by MassWeb.
In March 2006 WFNX-FM doubled its signal power and moved its transmission tower from Bedford, Massachusetts, to downtown Boston. To publicize the change it eliminated conventional advertising content and sold a 40-day sponsorship to beverage maker Snapple for more than $2 million. A series of free concerts and product giveaways rounded out the promotional campaign.
In the summer of 2006 the firm reshuffled some of its top management and moved Phoenix editor Peter Kadzis to the job of executive editor of PM/CG, replacing him with associate editor Bill Jensen. The moves were directed in large part by executive vice-president Bradley M. Mindich, the 38-year-old son of publisher/chairman Stephen Mindich. The junior Mindich, who was also CEO of People2PeopleGroup, would take the title of PM/CG president at year's end from the retiring H. Barry Morris.
In August a federal appeals court ordered a retrial in the libel case the firm had lost in 2004. The company was facing a new $10 million lawsuit by a different plaintiff over the same 2003 article about child abuse. In the fall Phoenix editor Bill Jensen left to take a job with the New Times chain of alternative newspapers, and was later replaced by Lance Gould.
In 2007 the firm's mobile phone services subsidiary, g8wave Holdings, Inc., went public on the over-the-counter exchange through a reverse merger. It offered text messaging, ringtones, wallpaper, and specialized marketing services, which were increasingly favored by companies, such as Snapple and Miller Light, seeking the attention of younger consumers. ITU Ventures had earlier invested $7.5 million in g8wave and the unit had reported sales of $9.5 million in 2006, though it was not yet profitable.
In 40 years The Phoenix Media/Communications Group had established a strong portfolio of print, broadcast, and telecommunications properties. With its Internet and mobile phone marketing operations leading the way, the firm appeared on track for continued growth.
Principal Divisions
The Phoenix; FNX Radio Network; People2People Group/Tele-Publishing International; Stuff@Night Magazine; Phoenix Interactive; Phoenix Media Ventures; g8wave Holdings, Inc.; MassWeb Printing, Inc.
Principal Competitors
The New York Times Co.; Herald Media, Inc.; Dig Publishing, LLC; The Improper Bostonian Magazine; CBS Radio, Inc.; Entercom Communications Corp.; Teligence Communications, Inc.; Advanced Telecom Services, Inc.
Further Reading
Canfield, Clarke, "Weekly Readers Get Alternative," Portland Press Herald, September 14, 1999, p. 1C.
Downing, Neil, "NewPaper to Get Facelift from New Publisher," Providence Journal, July 29, 1988, p. 11.
Elliott, Stuart, "A Station with a One-of-a-Kind Campaign: All Snapple, All the Time," New York Times, May 25, 2006, p. 4C.
Gatlin, Greg, "Boston Phoenix Gives It Away," Boston Herald, February 1, 2000, p. 29.
Gianatasio, David, "Phoenix Media Begins Work on Nightlife Mag," ADWEEK New England, September 29, 1997, p. 4.
Hammel, Lee, "Phoenix Is Folding Worcester Paper," Worcester Telegram & Gazette, May 2, 2001, p. E1.
Jurkowitz, Mark, "Plaintiff Awarded $950,000 in Suit Against the Phoenix," Boston Globe, December 18, 2004, p. B2.
------, "Radio Guru Gets 'In Your Face,'" Boston Globe, August 10, 2001, p. D10.
------, "When Horror Makes News," Boston Globe, June 7, 2002, p. B1.
Kesich, Gregory, "Media Group Buying Sanford Rock Station," Portland Press Herald, March 26, 1999, p. 2B.
Mishra, Raja, "US Court Overturns Libel Verdict on Phoenix," Boston Globe, August 4, 2006, p. B3.
Palmer, Thomas, "Phoenix Finds That Technology Adds Zest, Profits to Classifieds," Boston Globe, April 21, 1991, p. 75.
Pertman, Adam, "3-Way Worcester Newspaper Fray Shapes Up," Boston Globe, March 31, 1993, p. 25.
Pfeiffer, Sacha, "Phoenix Buys into El Planeta," Boston Globe, September 1, 2005, p. E1.
Reidy, Chris, "Boston Phoenix Hopes to Fly Higher with New Look," Boston Globe, June 16, 2005, p. E1.
------, "In a Tough Media Market, the Phoenix Restructures," Boston Globe, July 26, 2006.
Simon, Clea, "'FNX Changing Its Format Back," Boston Globe, March 21, 2003, p. B6.
Smith, Andy, "Phoenix Raises WWRX from Merger Ashes," Providence Journal, March 24, 2000, p. F1.
Van Der Pool, Lisa, "Mobile Marketing Firm g8wave Goes Public," Boston Business Journal, August 31, 2007.
------, "Phoenix Eyes Revamped Web As Next Growth Step," Boston Business Journal, December 23, 2005.
Wakefield, Dan, "Up from Underground," New York Times, February 15, 1976, p. SM4.
Wald, Matthew L., "About Boston: 'Alternative Paper,' 2 Decades Old, Dons Black Tie," New York Times, October 7, 1986.
— Frank Uhle
