Columbia House: The CD Distribution Titan

For us 90’s kids, Columbia House (and their rival, BMG) were ubiquitous and important purveyors of CDs. Their infamous “8 CDs for a Penny” promotion was touted everywhere and many (including me) were hooked. It had a very tangible effect on the music business: some estimates say 15% of CDs sold in the 1990s were from mail order companies. How did this business model work? When you signed up, you turned on the firehouse–they would keep sending you full-price items on a monthly basis until you cancelled. This actually worked. The A.V. Club talked about working at Columbia House with four now-famous individuals who worked there as 20-somethings in the 90s, including journalist Sasha Frere-Jones and online content god Piotr Orlov.

Four Columbia House insiders explain the shady math behind “8 CDs for a penny”, 6.10.15