Columbia House, a mail-order club known for its famous offer of 12 CDs for a penny to new members, has recently announced its closure after 71 years. The closure notice, which was initially visible on the company’s website, has since been removed. CBC News has attempted to contact Columbia House for further details regarding its future plans.
Founded in 1955 as Columbia Record Club by Columbia Records, the company aimed to reach consumers in areas without access to traditional record stores. Over the years, the business expanded to include newer formats such as cassettes, CDs, and eventually DVDs of movies and TV shows.
Early customers were attracted by promotions in magazines and newspapers that promised free records, tapes, or CDs for a penny, with the condition of committing to purchasing a set number of music releases monthly. Columbia House’s model was successful, with reports indicating that by 1994, the company had shipped over a billion records and contributed to 15% of CD sales.
However, as online music options gained popularity, Columbia House, then under the ownership of Direct Brands, ceased its music sales operations in 2010 and shifted focus to selling DVDs exclusively. The company also closed its operations in Canada.
In a previous bankruptcy filing in 2015 by the parent company Filmed Entertainment Inc., Columbia House had struggled but continued its DVD sales. The company reported its peak revenue in 1996 at around $1.4 billion US.
Recent data suggests a renewed interest in physical media, with vinyl sales seeing a resurgence in 2025. This trend aligns with reports of increased business at record stores.
Despite previous articles surrounding Columbia House’s financial challenges, the recent closure announcement has elicited nostalgia among music fans. Social media has seen users reminiscing about their experiences with the mail-order club, with some humorously mentioning unpaid fees.
While the closure notice has been removed from Columbia House’s website, CBC News is waiting for a response from the company for further information.