After 71 years in operation, a mail-order club known for its famous offer of 12 CDs for a penny has announced its closure. Columbia House, which halted music sales and operations in Canada back in 2010, recently posted a closure notice on its website, only to remove it later.
The company, originally launched by Columbia Records in 1955 as Columbia Record Club, aimed to reach consumers in areas with limited access to record stores. Over the years, the mail-order business expanded its offerings to include cassettes, CDs, and later on, DVDs of movies and TV shows.
The club’s business model enticed early customers with promises of multiple records, tapes, or CDs for just a penny, with the condition of purchasing a certain number of releases monthly thereafter. This strategy proved successful, with Columbia House accounting for 15% of CD sales by 1994 and shipping over a billion records.
However, with the rise of online music options, revenue began to decline. In 2010, under new ownership by Direct Brands, Columbia House ceased music sales and transitioned solely to DVD sales, eventually closing its Canadian operations.
The parent company of Columbia House, Filmed Entertainment Inc., filed for bankruptcy in the U.S. in 2015. Despite this, the company continued to operate primarily on DVD sales until the recent closure announcement.
The news of Columbia House’s closure comes at a time when there is a renewed interest in physical media, with vinyl sales seeing a surge in recent years. Music enthusiasts have taken to social media to pay tribute to the iconic music club and reminisce about their experiences with the service.
CBC News has attempted to reach out to Columbia House for further details following the removal of the closure notice from its website, but has not received a response yet.