BMG Buying Columbia House

This is interesting. Bertelsmann AG (BMG) is buying Columbia House for $400 million. Their plan is to roll Columbia House into the BMG Music Service. This just doesn't seem like a good deal for BMG. I would think that most music lovers, like myself, have memberships to both services. In other words, BMG can't count on getting all of Columbia House's members.

I have been a member of the BMG club since 1994. I LOVE BMG. They have a huge selection of Jazz music. I usually only buy from them when they run a "Buy 1 Get 3 Free" sale. With taxes and shipping and handling it works out to less than $10 per CD, which is a pretty good deal. I wonder what will happen with less competition.

Tags: BMG Music Service, Columbia House