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Boston Phoenix folds - WFNX.com also will shut down

The Boston Phoenix, which only six months ago reinvented itself from a tabloid-sized weekly newspaper known for its gritty coverage of politics and the arts into a glossy magazine, will be closing immediately, while its sister publications in Providence and Portland will remain open, according to a statement from the company.

WFNX.com, the company’s online radio station, is also closing.

Here is a press release Phoenix Media:

The Phoenix Media/Communications Group owner and publisher Stephen M. Mindich today announced a major reorganization. Among the changes:

With the issue dated March 15, The Phoenix, the 47 year old alternative arts and news weekly will cease print publication. The online issue slated for the week of March 22, will be the publication’s last.

The Portland Phoenix in Maine and the Providence Phoenix in Rhode Island will be unaffected. They will continue weekly publication.

The custom publishing unit of the PM/CG, likewise, will stay in business. as will MassWeb Printing, based in Auburn MA.

Mindich announced these changes at a staff meeting at 2 pm today. Freelance contributors were notified subsequent to that.

PM/CG Executive Editor Peter Kadzis, a 25-year veteran of the Phoenix, said this:

“I started reading the paper when I was 14 years old and had the fun and challenge of running it for 20 years or so. Political Boston, arts Boston, just won’t be the same. We are a text book example of sweeping market-place change. Our recent switch to a magazine format met with applause from readers and local advertisers. Not so -- with a few exceptions -- national advertisers. It was the long-term decline of national advertising dollars that made the Boston Phoenix economically unviable. Providence and Portland, however, don’t suffer from that problem. The local advertising market is sufficient to support those publications. You can see why Warren Buffett favors small market papers over their big city brothers and sisters,”

“The tragedy” wrote Boston Phoenix Editor Carly Carioli in a blog post, “is that it feels like we’re going out at the top of our game. As I write this our best journalists are where they belong: in the field. David Bernstein is in Washington, interviewing Elizabeth Warren for what would have been the next issue’s cover story. Music editor Michael Marotta is heading up a team of photographers and writers covering SXSW. Among those with him is Liz Pelly, who arrived in Austin direct from a DIY music festival in Mexico. Our next issue would also have included an important essay by 350.org’s Bill McKibben on the Democratic Senate primary between Ed Markey and Steve Lynch -- and its deep importance to preventing the expansion of the KXL pipeline.”

Here is the full text of a statement from Publisher Stephen Mindich to his staff:

I can state with certainty that this is the single most difficult communication I’ve ever had to deliver and there’s no other way to state it than straightforwardly –

As of now the Boston Phoenix has ceased publishing and wfnx.com will not continue as it is.

As everyone knows, between the economic crisis beginning in 2007 and the simultaneous radical changes in the media business, particularly as it has affected print media advertising, these have been extremely difficult times for our Company and despite the valiant effort by many, many past and current staff to attempt to stabilize and, in fact, reverse our significant financial losses, we have been unable to do so and they are no longer sustainable.

Because of their smaller scale of operations and because we believe that they remain meaningful publications to their communities, with some necessary changes to each, it is our intent to keep the Providence and Portland Phoenixes operating and to do so for as long as they remain financially viable. The same is true for Mass Web Printing Co.

I cannot find the words to express how sad a moment this is for me, and I know, for you as well, so I won’t try.

What I can and will say is I am extremely proud, as all of you should be, of the highest standards of journalism we have set and maintained throughout the decades in all of our areas of coverage and the important role we have played in driving political and socially progressive and responsible agendas; in covering the worlds of arts and entertainment, food and fashion – always with a critical view, while at the same time promoting their enormous importance in maintaining a healthy society; and in advocating for the recognition and acceptance of a wide range of lifestyles that are so valuable for a vibrant society.

And finally, at least for this moment, I want to thank all of you – and the literally thousands of women and men before you, for lending your talents to our mission over the past 47 years – as I have always said – our staff has been our soul.

And obviously as well, my sincere gratitude to our millions of readers and tens of thousands of advertisers without whom none of what we did accomplish could have been possible or meaningful.

So, that’s it. We have had an extraordinary run.
 
sad day... I didn't really like the new glossy version of the Phoenix (layout, small print--yes, my eyesight sucks) but still liked the articles and the arts/movies/music coverage. And, of course, it's a shame to see the radio station go so quickly, as well. R.I.P.
 
My favorite part is that a half-million in unused trade represents the major asset of the newspaper publisher.

My second favorite part is talk about "intellectual property" of failed enterprises, starting with WFNX
 
promixcuous said:
I wonder how The Herald survives?

Selling the building and having the Globe and WSJ print the paper helped.

Many suspect Murdoch is still the owner and Purcell is a figurehead.
 
The Morrissey Bvd. Herald is as good as gone once Purcell gets all the approvals he needs for
the redevelopment of Wingo Square. Right now it's an insurance policy.

Does Wilson Tisdale distribute the Herald outside 128 (or at least beyond 01835)?
I think the last Herald truck I saw outside of 128 was on the Pike, making a hasty
run from Chicopee
 
such a sad day for alternative media and music. WFNX had become the near constant soundtrack here in the home office, and will be so missed. I had just finished telling clients that they were heralding a new age in alternative media and how I'd love to see something like it here in ny. Now to hear this. very saddening. Best of luck to all those impacted, as there were many talented staff on all sides.
 
John MacCormack said:
That's terrible news, first 101.7 WFNX, now the Boston Phoenix and even WFNX.com :(

It makes one wonder why Mindich even went thru the trouble in the first place. I mean, if things are as dire as the press release suggests, I'm sure he had more than an inkling that this would happen. And to top it off, Radio BDC had already launched by the time he unrolled the new WFNX.com. What was the point? ???
 
I assume WFNX (101.7) and the Phoenix were owned by separate corporate entities.

But Mindich just got $14 million for 101.7 less than a year ago.

Say even half of that was tied up in debt -- he still would have cleared $7 million.

The Phoenix was losing $1 million a year, according to the releases.

He still probably had much coin left.

There's much more to this.
 
wickedwritah said:
I assume WFNX (101.7) and the Phoenix were owned by separate corporate entities.

But Mindich just got $14 million for 101.7 less than a year ago.

Say even half of that was tied up in debt -- he still would have cleared $7 million.

The Phoenix was losing $1 million a year, according to the releases.

He still probably had much coin left.

There's much more to this.

The Feds take 15% long-term capital gains tax. State bites off another 5%. That's 20% right off the top.
Not saying the guy didn't make any change from this transaction but he is no Bill Gates as you all make him out to be.
 
How is there much more to this? Want to know what happened to the Phoenix? You're using it right now...


The Internet killed the print media star.
 
I totally agree!!

Care to take bets as to when the Village Voice Will fold?



WNTIRadio said:
How is there much more to this? Want to know what happened to the Phoenix? You're using it right now...


The Internet killed the print media star.
 
Doesn't matter how much Mindich was WORTH, what matters is the Phoenix's cash flow. By all accounts, it was seriously negative and the trends weren't looking good anytime in the future.

The Feds take 15% long-term capital gains tax. State bites off another 5%. That's 20% right off the top.
Not saying the guy didn't make any change from this transaction but he is no Bill Gates as you all make him out to be.

I had a chance to overhear some discussion on this point from, shall we say, people in the know. (one of whom has a lot of direct experience with Mindich) The consensus was that he's pretty stinking rich, but not as rich as he used to be during the heyday of the early dot-com era (back when the Phoenix was raking in the cash from dot-com ads (and their personals, of course) but newspapers hadn't yet been destroyed by the intertoobz) when, allegedly, he was worth over $40mil. Don't forget that he's married to a former judge (the infamous Maria Lopez) and lives in Newton, too. At a minimum I'm sure he's quite well off.

But even if he's got $40mil in the bank, that doesn't mean he can...or more importantly, WANTS to...operate the Phoenix at a loss. Plus he's trying to sell that building the Phoenix is in and THAT will undoubtedly net him a pretty penny. Doesn't make much sense to move the whole shebang when its losing a million bucks a year.
 
Back in the early 80's Minditch was really bothered by the fact that he only made money from the personal advertiser and not the 7 responses that the average personal ad generated. He wanted somehow to make money off those responses that sat in the personal advertisers box in The Phoenix Classified office on the corner of Mass Ave and Newbury Street. In 1986, the Pay Per Call or Audiotext industry was born. And so called Information Providers like Minditch could have telephone companies transport, bill and collect for various programs on their behalf. Minditch now had his vehicle to make money on both ends. TelePublishing was created and at one point handled the pay per call traffic for 60 to 70% of the Alternative Weeklies across the country. Mindich expanded and was successful in the UK and other foreign countries. He made millions off of the 900 phone business. But for some reason TelePublishing was never able to make money off the Internet. Internet dating services for obvious reasons killed Audiotext Industry but not before it made Mindich more money than he ever made off of the newspapers.

One of the problems Alternative Weeklies have is bars nightclubs and restaurants are famous for not paying their bills. At onetime the Phoenix basically had its own in house collection agency and one guy who would primarily do nothing but file court actions against deadbeat clients who were mainly bars restaurants and nightclubs.

Minditch also did everything he could to drive the Improper Bostonian and the Weekly Dig out of business. He had been successful in the past stomping out any competition but I am sure it eats at him that they are still around.

I am going to miss reading David Bernstein and Chris Farone both two very talented writers who I am sure will not be out of work for long.
 
I am just sad that Mindich did not allow the staff a final print edition. He didn't decide on Wednesday that he was folding the paper.

The man got soft as he made millions on the 900 adult ads and WFNX and The Phoenix became toys. When the personals advertising vanished he didn't have a clue on how to respond.
 
wickedwritah said:
I assume WFNX (101.7) and the Phoenix were owned by separate corporate entities.

But Mindich just got $14 million for 101.7 less than a year ago.

Say even half of that was tied up in debt -- he still would have cleared $7 million.

The Phoenix was losing $1 million a year, according to the releases.

He still probably had much coin left.

There's much more to this.

He has a bunch of money so he should have continued to lose money on the Phoenix? Wow. Economic illeteracy is stunning.
 
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