Columbia House, a mail-order club known for its famous offer of 12 CDs for a penny to new members, has decided to close its doors after operating for 71 years. The closure announcement, which initially appeared on the company’s website, has been removed recently. CBC News has attempted to contact Columbia House for additional details regarding its future plans.
Music enthusiasts were the first to notice the closure notice over the weekend. The announcement stated that after September 15, 2026, Columbia House would stop accepting new orders. Established in 1955 as the Columbia Record Club by Columbia Records, the company aimed to reach customers in areas where traditional record stores were not accessible. Over time, the mail-order business expanded to include various formats such as cassettes, CDs, and even DVDs of movies and TV shows.
Early customers were attracted by promotions in magazines and newspapers promising multiple music items for just a penny, with the condition of committing to purchasing a minimum number of releases monthly. This business model proved successful, with Columbia House shipping over a billion records and contributing to 15% of CD sales by 1994, as reported by a 2011 article from the Boston Phoenix.
However, with the rise of online music options, Columbia House’s revenue declined, leading to a shift in focus from music to DVD sales in 2010 under the ownership of Direct Brands. The company also ceased its operations in Canada. Notably, the parent company of Columbia House, Filmed Entertainment Inc., filed for bankruptcy in the U.S. in 2015 but continued to operate primarily in the DVD market.
Columbia House revealed that its peak revenue of around $1.4 billion US was reached in 1996. This closure announcement comes at a time when there is a resurgence of interest in physical media. Recent data from Music Canada shows a significant increase in vinyl sales in 2025, indicating a growing preference for tangible music products.
Despite having bid farewell to Columbia House’s iconic music collection model during the 2015 bankruptcy, this recent news has prompted music lovers to reminisce on social media about their experiences with the company and its offerings. Some users humorously mentioned their unpaid debts to Columbia House, adding a nostalgic touch to the farewell sentiments. CBC News has sought further clarification from Columbia House following the removal of the closure notice from its website but has not received a response yet.