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Jun 14, 2019 · At their mid-1990s peak, Columbia House and BMG made a lot of money. According to The Recording Industry by Geoffrey P. Hull, music clubs paid between $1.50 and $5.50 for a CD, which they then sold for $16. He reports that if the clubs sold one out of every three discs, they'd make close to $8 in profit.
BMG Music Pricing Review. As far as BMG is concerned, here's how the pricing is broken down: - Shipping cost for 1st cd is $2.69, 2nd is $2.59, and each additional is $2.49. - Total shipping for 12 cds $30.18. - The price of the 1 cd you must buy will be at least $14.98 at the regular club price.
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- 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....
Aug 12, 2015 · During the 1980s and 1990s Columbia House and its primary competitor, BMG—the two companies actually merged in 2005, and BMG shuttered its music club in 2009—ran hustles so effective they ...
Jun 21, 2011 · In the end, all these little factors saved a ton of money. In his 2004 book The Recording Industry, Geoffrey P. Hull took a look at the economics of the clubs. He estimated that the cost to the ...
- Ethan Trex
May 3, 2018 · A music club was a luxury, but still, I tried reasoning with myself: surely I could dredge up the $14.95 from somewhere. I was good at solving problems. I was good at solving problems. I carefully tore the perforated edges of the card away from the page, checked the “pop/soft rock” preference box, and made my first initial selections from ...
Dec 23, 2008 · 12/23/2008. BMG Music Service stopped accepting new members this week, marking the end of the once-ubiquitous “12 for the price of one” offers that the mail-order CD club was known for. A ...
