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Jun 14, 2019 · He reports that if the clubs sold one out of every three discs, they'd make close to $8 in profit. Selling a low-cost product at a high markup is how Columbia House and BMG were each able to bring in $1.5 billion annually. A source close to the music club world told Forbes, "We were minting money."
The more famous and oldest club is the BMG Music Service. This club allows members to receive 11 free CDs as long as they purchase one at regular price within a year of sign-up. Members must, however, pay shipping costs for each of the CDs they order (including the free ones), which is about two bucks apiece. A newer music club at the BMG store ...
The largest and oldest of the BMG music clubs is the BMG Music Service. This is the service most of you have heard of: 12 CDs for the price of one! Becoming a member of this great service is easy and convenient. First, you select seven free CDs from BMG's vast catalog of music. Then, you are only obligated to purchase one CD at regular price ...
- Nothing in Life Is Free. Especially CDs
- Inside The Belly of The Beast
- When The Music’s Over
- Turn Out The Lights
CD clubs offered ever-shifting traps for all ages and tastes, the deadliest of which involved ordering and receiving free albums, not paying a thing, never canceling the subscription, then dropping off company radar. Once a given time passes, contract clauses spring to life, full price is charged for all free discs, a collection agency is assigned,...
To keep costs low and profit margins high, CD clubs produced their own discs to sell, some apparently of questionable sound quality. Stereophileconducted a test in 1994in which top audio engineers repeatedly listened to both club and retail releases of the same albums, and indeed, they detected inconsistencies — different compression levels, stereo...
By 2003, the unraveling had begun. In a class-action lawsuit, a U.S. District Judge dropped the hammer on CD club private defendants, for what CBS News called a “price-fixing conspiracy.” A $143 million settlement was dispensed to millions of buyers, in the form of 75% discounts on full-priced club discs…which required a membership to buy. The priv...
BMG CD club was ultimately put to sleep in 2009 by its parent Columbia House group, who then succumbed to bankruptcy in 2015. In addition to schemesters and lawsuits, several clear factors led to their downfall. One painful legal caveat involved clubs having to wait from three months to a year before being permitted to sell an artist’s new release....
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Jun 21, 2021 · The Columbia House music club, quietly owned by media Godheads Sony and Time Warner, slung eight-CDs-for-a-penny — if the member bought a certain amount of music at full club prices while ...
- Jonathan Rowe
Jun 21, 2011 · Hull did the math and realized that even if only one of every three discs a club distributed sold at the $16 list price, the club would still end up making a margin of around $7.20 on each sold disc.
Mar 10, 2009 · March 10, 2009. The BMG Music Service — the mail-order company famous for offering CDs at deals like “12 for the price of one” — has revealed in an e-mail to subscribers that they will ...
