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    Columbia House closes its doors in Canada due to ‘obsolete’ media

    The promise of a dozen albums for one dollar, or some other irresistible introductory offer from the Columbia House music and movie club, came to an end in Canada on Thursday.

    The entire Toronto staff was terminated after its parent company's Canadian division declared bankruptcy.

    Reports about the sudden closure of Direct Brands Media, which was also offering new members a $3 book from the Doubleday Book Club, echoed a now-familiar story of an entertainment retailer unable to justify its continued existence in the digital age.

    "People like to get it for free on the internet," company graphic designer Jeff Betts told the Toronto Star. "The media we sell . . . it's obsolete."

    While similar laments have been heard repeatedly over the past decade, it's nonetheless rare for a company like this to abruptly cease operations, leading one to wonder how they hung in for so long.

    Based on a Toronto Sun story that noted 100 employees have been left without severance just before the holidays, the closure seemed to take most of them by surprise.

    Columbia House Record Club has a history dating back to 1955, designed to deliver music through the mail to Americans with limited access to record stores. Business boomed further with the introduction of cassettes and 8-track tapes, and later videocassettes.

    The field became even more competitive with the higher profit margins of CDs and DVDs.

    Marketing to new members generally consisted of offering an initial flurry of titles, practically for free, with the less-prominent condition that a certain number be purchased at an inflated retail price from a monthly catalogue during the membership period.

    Just in case you couldn't decide which album you wanted to buy that month, Columbia House was happy to send their featured selection to you, unless you mailed in a refusal.

    These practices came under greater scrutiny by the time people found online forums to complain about them.

    BMG Music Service, which eventually absorbed Columbia House in the U.S., cited competition from online disc retailers when it closed in Canada in 2000. Two years ago, after the sale of the company to Direct Brands, the music club was phased out.

    The company continues to sell new CDs online to American customers for $6.99 each, with one delivered each month, based on selections placed into a queue.

    Columbia House Canada continued to offer memberships, initiated with the purchase of a discounted DVD, along with the promise of "No More Unwanted Shipments!" A similar approach was taken by the Doubleday Book Club, which hoped members poking around its website to fill minimum purchase requirements would add a few more discounted items to their cart.

    Now, like so many other forms of media affected by the digital age, the Columbia House pitch has officially become a thing of the past:

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    4 comments

    • GAAGII  •  Arnold's Cove, Newfoundland and Labrador  •  3 months ago
      Me too the money thing lol They charged too much on shipping and handling
      You can get movies free just look Or go to wal mart
      What if people that have a lot of movies were to share with others
      We could have our own movie and music club
    • Janene  •  Barrie, Ontario  •  4 months ago
      kinda glad i owed them money lol ohh well
    • MoonWhisper aka blueEyed ...  •  5 months ago
      this is how i always got my movies or music..where do we go now to get our stuff other than the stores...
      • Kyle 4 months ago
        Ohhh no, now you can't select from a small catalogue with a limited selection of only the most mainstream, banal titles in existence... As for where to go now - Well, you appear to be on the internet at the moment... Ever hear of Amazon?
      • Janene 4 months ago
        lol
    • Cafe World  •  7 months ago
      This is how I always got my movies they have always been prompt and in good working order if there was ever a problem which only occurred once it was dealt with immediately I am outraged at the idea of no more movies by mail it was like Christmas every month with one movie or more depending on my financial state at the time this would explain why my calls go unanswered and mail is always returned to me I have ordered movies and paid cash for them so now what do I do who do I complain to I'm a homebody some say a hermit this is my way of life and I like just fine why is it Canada is always the one to loose the good stuff and the states be allowed to do exactly what Canada has been denied for so many years I protest if I had someone to protest to just like the states to take take take and what do you give back nothing oh we'll be there for you in war time great thanks glad you got our backs but seriously your government is no better than ours two faced lies and thieves if you can put it in your pocket go for it if not get rid of it if that's the case I'm ashamed of the nation that is forming around us this is exactly why I'm a hermit at least here the bs of the outside world don't affect me but the states are making it more difficult for us Canadians to live ever since free trade came in this country has gone to pot prices increasing rapidly housing costs sky high more people out of work and living on the street our medical flying out the window you don't think we notice oh we notice but yes we're the little guy the ones no one ever listens to just like this note it will be read and discarded then thrown out like last nights supper Thanks for nothing Signed severely pissed off!!!!!!!!!!!

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