After 71 years in operation, a subscription service known for its offer of 12 CDs for a penny to new members has announced its closure. Columbia House, which had stopped selling music and ceased operations in Canada in 2010, recently removed the closure announcement from its website.
Music enthusiasts became aware of the closure notice over the weekend, indicating that Columbia House would stop accepting new orders after September 15, 2026. The company, originally launched by Columbia Records as the Columbia Record Club in 1955, aimed to boost music sales in areas without access to record stores through its mail-order service. Over the years, the business expanded to include cassettes, CDs, and eventually DVDs of movies and TV shows.
Initially, customers were attracted by advertisements in magazines and newspapers promising multiple records, tapes, or CDs for a penny, with a commitment to purchase a set number of releases monthly. This model proved successful, with Columbia House accounting for 15% of CD sales by 1994 and shipping over a billion records.
As online music options increased, Columbia House’s revenue declined, leading to the cessation of music sales in 2010 under new ownership by Direct Brands. The focus shifted solely to DVD sales, prompting the closure of its Canadian operations.
Following a period of financial struggle, the parent company of Columbia House, Filmed Entertainment Inc., filed for bankruptcy protection in the U.S. in 2015. Despite this, the company continued operating primarily through DVD sales until the recent closure announcement.
In 2015, Columbia House reported that its peak revenue was around $1.4 billion US in 1996. The news of its closure comes at a time when physical media is experiencing a resurgence, with vinyl sales seeing a significant increase in recent years.
While many had already bid farewell to Columbia House’s iconic music collection model during the previous bankruptcy filing, the recent news has sparked a wave of nostalgia among music enthusiasts. Social media has been abuzz with users reminiscing about their experiences with the service and joking about unpaid fees.
CBC News attempted to contact Columbia House for further details after the closure notice vanished from its website but has not yet received a response.
