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 Black Stats          
Frequently requested data on African American consumers

Black Buying Power:
  $679 Billion (2004)

Black U.S. Population:
  38.3 million

Top Five Black Cities
  - New York
  - Chicago
  - Detroit
  - Philadelphia
  - Houston

Top Five Black Metros:
  - New York-New Jersey
  - Washington-Baltimore
  - Chicago-Gary
  - Los Angeles
  - Philadelphia

Top Five Expenditures:
 - Housing 110.2 bil.
 - Food 53.8 bil.
 - Cars/Trucks 28.7 bil.
 - Clothing 22.0 bil.
 - Health Care 17.9 bil.

Click here for more stats from "The Buying Power of Black America."
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Historic agreement gives Chicago’s WVON new signal on Clear Channel’s WRLL

By Demetrius Patterson
Chicago Defender
(August 16, 2006) WVON-AM/1450, the city's only Black-owned radio station that bills itself "the talk of Chicago," has entered a historic agreement with the nation's largest owner of radio stations, Clear Channel.

Under the deal announced Tuesday by WVON's owner, Melody Spann-Cooper (above), and Earl Jones, regional vice president of Clear Channel Radio, the Black talk station has signed a five-year, multi-million dollar deal to lease the 10,000-watt daytime signal - 1,000-watt nighttime - that currently broadcasts oldies station, WRLL-AM/1690.

Spann-Cooper said the 43-year-old WVON has an option to buy the signal at the conclusion of the five-year agreement.

"It's really rare (to have Clear Channel give an option to buy)," Spann-Cooper told the Defender in an interview Tuesday in Clear Channel's downtown offices. "I mean, that's what they do, buy radio stations, and now to agree to possibly sell one of them off. And it's a rarity at this particular time because you don't find independents able to buy radio stations. I thought (Clear Channel) was very fair on how they negotiated on the buyout."

Beginning today, WRLL will become automated and will play oldies until the switch is made Sept. 18, when WVON will begin broadcasting on 1690. Jones said Clear Channel will honor the contracts of six employees affected by the sale.

The deal - officially called a local marketing agreement - is a huge coup for Spann-Cooper, which will allow her to expand the reach of WVON to the south suburbs, where many African Americans have moved over the years. It is also a tremendous upgrade considering the station currently airs 15 hours of programming a day because it shares the signal with another station, the only deal of its kind in the nation. She stated that the arrangement has hindered her company from growing its revenue base.

WVON currently generates about $2.5 million annually, with at least 50 percent of that coming through non-traditional revenue. It's small wattage also affects its ratings, which has a direct result in the amount of money it can charge advertisers. In the most recent Arbitron ratings, WVON garnered a .9, ranking it 30th among all stations in the Chicago area.

Although Spann-Cooper signed the agreement last week, the deal has been in the works for about five months.

Jones (left) said Clear Channel, which owns seven stations in the market, including WRLL, was experiencing "marginal" results with the oldies format, and was exploring options, including selling to other interested parties.

"When you come into a market (as a new boss), you try to figure out number one, how do you keep you licenses, and number two, how do you make them more valuable," Jones said. "So, my first inclination was, this is not working so what do you do?"

Jones said his first thought was to flip the station to a Black talk station. But realizing the historic value of WVON, he sought a better option.

"This community deserves to keep those call letters around. She deserves (to grow) what she's fought to keep on the air," Jones said.

He said he also wanted to pursue the arrangement because of the relationship he had forged with Spann-Cooper since his arrival in Chicago in October.

"I said, 'Melody, would you be interested in coming and taking on the signal, although I have someone over here ready to write me a check," Jones said. "Her eyes lit up, and she said, 'Absolutely!'"
 
Their relationship was cemented when Jones faced a turbulent introduction in the market after one of the company's stations, WVAZ-FM/102.7, decided to replace longtime talk show host Cliff Kelley on it's Sunday morning show with motivational speaker Les Brown. Ironically, Kelley is the host of "The Cliff Kelley Show" from 6 a.m to 10 a.m. daily on WVON.

Community activists and listeners barraged the station - and specifically Jones - with letters, phone calls and e-mails demanding Kelley's return to the airwaves. But the station didn't back down and moved forward with Brown.

"You can come into Chicago two ways, either wrong or right," Spann-Cooper said. "It's a big city, but it's a small town. And you have to come in here and meet the right people, because once you're in, you're in.

"Earl came in right. He came in not as 'I'm the new big guy at Clear Channel; all bow down.' He came in and reached out to people."

Spann-Cooper said she knows that were Jones not an African American, she wouldn't have had the opportunity to do the deal.

"When African Americans are put in positions of power, it is so important. Everyone can't be an entrepreneur, but there is a link," Spann-Cooper said. "They have some sensitivity to people they are doing business with. Earl gets it. Earl got it from the time he got here."

Jones said he has the full backing of Clear Channel's corporate offices in making the deal with WVON and they are excited about the opportunities it will create.

Agreement creates unique relationship
Under the terms of the deal, Clear Channel will continue to own the 1690 frequency, but WVON will be responsible for all programming on it and will remain an independently-owned station, Spann-Cooper said.

WVON will continue its ownership of the 1450 frequency, but Spann-Cooper hasn't decided what she will do with it. If she chooses to simulcast her WVON programming, FCC rules will only allow her to do up to six hours of it, Jones said.

She said that's not an option she's considering.

To assist in the re-branding of WVON on 1690, Jones said Clear Channel will run, possibly from four to six weeks, ads on WVAZ, WGCI-FM/107.5 and WGRB-AM/1390, promoting the station moving to the new radio dial position. He also said the company's billboard division will also provide space in the south suburbs promoting the frequency switch.

Jones added that the deal will also allow WVON to be represented to national advertisers through Clear Channel Radio Sales, which sales airtime to a variety of stations - including competitors - nationwide.

Big changes in programming
Spann-Cooper, looking to upgrade WVON's on-air presentation, has hired Elroy Smith as operations manager for the station. He will continue in his role as operations manager for Clear Channel's WVAZ, WGCI AND WGRB.

"We are now at another level. We need a big town sound. And he's got it," she said.

Spann-Cooper stressed that Smith's hiring had nothing to do with the Clear Channel lease and was solely based on his longtime expertise in radio, and specifically, Chicago.

"We do not want the implication out here that, 'Oh, this is a smokescreen for Clear Channel,'" Spann-Cooper said. "This is an independent operation."

"Absolutely," chimed in Angela Ingram, vice president/communications for Clear Channel Radio Chicago. "Clear Channel will not have any control of the programming. At all."

Spann-Cooper said she will also hire a program director to direct the station, and said listeners can expect more on-air changes.

Of course, the upgrade to 24 hours means hiring more talent. Currently, Sharon McGhee hosts "First Light" from 5 a.m. to 6 a.m.; Kelley hosts the morning drive show.  Chicago Defender  Executive Editor  Roland S. Martin  hosts "The Roland S. Martin Show" daily from 10 a.m. to 1 p.m.; and John Daye hosts "On Target" from 10 p.m. to midnight. On weekends, the station brokers time to a variety of individuals.

Spann-Cooper said that she is in conversations with a number of potential hosts, but isn't ready to make any announcements as of yet. She also promised some "innovative" shows will air on weekends on the station, which currently brokers time to a variety of individuals. But she did say that some of the programming will include nationally syndicated programming.

After Sept. 18, WVON will cease to play music and will be an all-talk station dedicated to African Americans.

That means her father, the legendary Pervis "Blues Man" Spann, won't be "spinning" music on the station that he helped build.

"I have told him and he is extremely excited, but he still doesn't get it," Spann-Cooper said. "And I don't know if it is that he doesn't get it, or that he still doesn't believe it. That is what this means to this community."

Spann-Cooper said that the WVON family has been waiting for this and she expects the listeners to be "elated." She God has answered her prayers to have a 24-hour African-American owned radio station in the nation's third largest listening market.

But that change in frequency isn't the only moves happening with WVON. In a couple of months, the station will leave its headquarters on the West Side on Kedzie Avenue to a new location in the old Soft Sheen hair products building off of 87th Street.


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Latest 'Buying Power' report shows black consumers spending more on home life

As the American economy continues to move sluggishly, African-American households are curtailing their spending in many categories, including food, clothing and basic household items, while investing more in home repair, home entertainment and consumer electronics. Although they are trimming back, black consumers are still spending more than their white counterparts on most of these products.
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