The case study addresses the history of the radio economy and WFNX’s struggle to maintain a competitor in the industry.
WFNX-101.7 FM was a small radio station started by a local media conglomerate called The Phoenix Media/ Communications Group in 1983. WFNX was actually founded to serve as a link to the company’s flagship newspaper “The Boston Phoenix” which was known as the largest alternative weekly in New England. Speaking from an external standpoint, the industry’s consumers were well educated, affluent, well-read, single professionals and students at the time that were unsatisfied with mainstream media. These were the targets of the newspaper, and as a result WFNX would speak out to them in their own form of “alternative music.” Critical issues arise already because this company goes against mainstream media and is targeted toward a smaller minority of individuals. Alternative music was newly being introduced and proved to be acceptable on a smaller scale than other forms of music such as Rock and Roll and Pop.
The biggest key internal problem faced by the company is the stubbornness and lack of long-term vision in their human resources (PD Program Directors). The company received a huge spurt in growth after their Green Day concert; however their follow-up was rendered useless. Kurt St. Thomas’s prophetic vision created an excellent opportunity for the little 3,000 watt radio station to become a major competitor in the radio industry. While their competitors worked hard to adapt and switch formats to an alternative station, WFNX remained stubborn and refused to budge, resulting in losing their biggest bands and shows. Instead of salvaging the company and revamping new campaigns, Thomas decided to cut losses and leave the company in 1995. The company was in utter turmoil and they sift through three PD’s in a matter of two years and suffer a 100% turnover in sales staff in 1996 and 75% in 1997.
WFNX’s core strength was their establishment of an...