You remember Columbia House, right? You know, the website and mail-order service where you could get 13 records, tapes, CDs or DVDs for JUST $1? As a kid, I thought this was the coolest and best deal ever, and I remember seeing those commercials on TV, in the mail and online for as far back as I can remember. And even though some of their marketing tactics were downright shady, it pains me to report that another nostalgic company has fallen.
Columbia House, which is now owned by Filmed Entertainment, Inc. has filed for Chapter 11 Bankruptcy protection this week. The company has acknowledged that it can no longer compete in selling CDs and DVDs with the advent of digital music. It seems like that statement could have been made about 5 years ago with the same impact.
In its hey-day, Columbia House brought in $1.4 billion. That was in 1996. Since then it's been a spiral downward, with the company only making $17 million last year. How anybody was still paying them money is beyond me, but here we are. Even crazier, the company stopped selling CDs in 2010 and was completely outsourcing its DVD distribution until this announcement.
It's crazy to think how such a shady company stayed in business for so long, and that only the change in technology led to its closure. I can't tell you how many horror stories I've seen over the years of young adults getting suckered into the long-term commitments to Columbia House with no way out. While I wasn't one that fell for the 12 CDs for a penny or a dollar or whatever, I did fall victim to similar scams at the time with other companies. So while it's weird to see another 90s brand crumble, this one is oddly satisfying.read more...