A long-standing mail-order club that used to entice new members with a deal of 12 CDs for a penny is shutting down after operating for 71 years. Columbia House, which halted its music sales and Canadian operations in 2010, removed the closure announcement from its website on Tuesday.
The company’s decision to cease operations was noticed by music enthusiasts over the weekend through a notice stating that after 9/15/26, they would no longer accept new orders. Originally established by Columbia Records in 1955 as Columbia Record Club, the aim was to reach music fans in areas without access to physical record stores. The business grew rapidly as it adapted to new technologies, transitioning from records to cassettes, then CDs, and eventually including DVDs of movies and TV shows.
The club’s early appeal was driven by advertisements in magazines and newspapers offering multiple music items for a penny, with the condition that customers committed to purchasing a minimum number of releases monthly. This model proved successful, with Columbia House shipping over a billion records and holding a significant share of CD sales by 1994.
However, the company faced declining revenue as online music options became more prevalent. In 2010, under the ownership of Direct Brands, Columbia House ceased music sales and shifted its focus solely to DVD sales, ultimately closing its Canadian operations.
The parent company of Columbia House, Filmed Entertainment Inc., previously filed for bankruptcy in the U.S. in 2015 but continued operating primarily through DVD sales. In 2015, Columbia House reported its peak revenue in 1996 at around $1.4 billion US.
The closure news comes amidst a resurgence of interest in physical media, with vinyl sales experiencing a boost in 2025 according to a report by Music Canada. Despite the company’s long history, many music enthusiasts are now reminiscing about their experiences with Columbia House and its iconic penny deals.
While CBC News attempted to gather more information about the closure from Columbia House, the company has not responded to their inquiries following the removal of the closure announcement from its website.