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Earlier quoted context omitted.
I meant "as we know it". There are large parts that did not survive, such as this one, and music videos for example.
I see what you mean, but I think maybe "disruption" or "upheaval" is a better way to characterize the changes than "failure". Also, music videos are still made and widely watched on YouTube - again disruption rather than failure.
Earlier quoted context omitted.
I see what you mean, but I think maybe "disruption" or "upheaval" is a better way to characterize the changes than "failure". Also, music videos are still made and widely watched on YouTube - again disruption rather than failure.
Yep, it was just a sub-optimal word choice, a bit too strong.
Earlier quoted context omitted.
One would hope so but the evidence (CDs showing up in the mail) didn't tend to support that assumption. In addition, this was nearly 20 years ago so the technology wasn't as great as it is today. If memory serves, our interface was a DOS-based application with our PCs networked using Netware, if that says anything.
That technology was fine, the policy and culture is what mattered. Likely people were making sales targets and bonuses and looked the other way at "fraud" that aligned with that goal.
Earlier quoted context omitted.
One would hope so but the evidence (CDs showing up in the mail) didn't tend to support that assumption. In addition, this was nearly 20 years ago so the technology wasn't as great as it is today. If memory serves, our interface was a DOS-based application with our PCs networked using Netware, if that says anything.
That technology was fine, the policy and culture is what mattered. Likely people were making sales targets and bonuses and looked the other way at "fraud" that aligned with that goal.
Fraud detection became an important kpi, and sophisticated tools were used to minimize it. The company was shopped and acquired several times, due diligence for the business model would not allow outright fraud like this to survive. I appreciate the cynicism though.
Another example of manual processing done on the warehouse side was manually entering in pricing from the print catalogs, to honor pricing mistakes. Such mistakes cost the company millions of dollars, but I eliminated them by automating print segment pricing (via 4D, AppleScript and Em Software plugins).
An important element of the business which might not be appreciated is that members were segmented, so each cycle several versions of the "monthly" catalog were created, with pricing tailored to the segment ("in commit", "out of commit", etc).
The whole business was premised on this concept called negative option. Which just sounds so creepy and draconian and weird, but the idea that if you don’t say no, we’re going to send you shit. It’s going to fill your mailbox, and we’re going to keep sending it unless you panic and beat us back. That was how the money was getting generated. Interesting article, but a bit too long. I think in The Netherlands (and perh…
In the US it is Book of the Month Club (surprisingly still in business). https://en.wikipedia.org/wiki/Book_of_the_Month_Club
Did the article ever get to why Columbia House failed? I gave up due to the obnoxious ad load ( eleven external sites according to Ghostery), and that obnoxious Timescapes moving ad (which reloaded from the beginning with every text scroll , which means every 1-3 paragraphs) slowed it down to the point of being unreadable.
(Recognizing the weird/sleazy negative-option element, it was possible to use Columbia House to amass product at a discount while playing by the rules, as explain by others.)
The CD boom pushed the company toward $2 Billion annual revenue. Take these numbers as fuzzy. Revenue definitely dropped, but it was still sizable for music, though the music clubs became much less profitable...
When Bertelsmann acquired Columbia House to eliminate the competition for BMG, the music clubs were shut down. While I can sympathize with people calling Columbia House a failed business, its music business did not fail.