A personal finance blog dedicated discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance.


Tuesday, May 10, 2005

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.

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