In August, Columbia Home filed for Chapter Eleven bankruptcy, bringing an finish to a legacy that started out in 1955 Because The Columbia Document Club. Only Some months later, the brand is being resurrected, however possible not in the way in which many would have suspected.
Prior this month John Lippman, a former Lehman Brothers govt, purchased the company at public sale for $ 1.5 million. While many would possibly attempt to repurpose the brand as a Spotify clone or even return to its former trade of marketing CDs and DVDs for suspiciously low costs, Lippman has one thing else in thoughts.
Columbia Home will relaunch as a vinyl-most effective offering, The Wall Street Journal studies. Whereas firstly shocking, this does make some amount of feel, considering the latest increase in vinyl. We stated in September that Whereas CD sales continue to decline, vinyl sales we up 52 percent from the earlier yr, with over $ 222 million in income.
“You Will Find a yearning and an passion to check out a new structure,” Lippman says, explaining the decision to transition Columbia Home to a vinyl-centered service. “For a category that’s meaningful and rising unexpectedly, you don’t see numerous possibility.”
As An Alternative, Lippman plans to attraction to millenials and others who’ve proven a new hobby in vinyl, reasonably than those still polishing their traditional LPs. Of Course, this implies the usage of social media to market the revived Columbia House.
Streaming products and services like Spotify and Apple Song still earn more money than physical media in the case of Song, but Columbia House probably wouldn’t have had a lot of a chance in opposition to the competitors if Lippman had chosen that route. As The latest sale of Rdio to its rival Pandora confirmed, even with a just right offering, streaming isn’t always a protected bet.
Whether Or Not or now not Columbia House will return to its traditional business practices and can quickly be promoting you 10 albums for $ 1 is still to be viewed, however we’re curious to peer what the future has in store for the logo.