CD Club FAQ
Archive-name: music/cd-club-faq/part1&2
Posting-Frequency: every two weeks
Last-modified: 19 July 1999
Version: 4.21
URL: http://www.visi.com/~blakevh/bpvh/cdclubfaq/
Copyright: (c) 1994-2004 Brad Von Haden
Maintainer: Brad Von Haden
The CD Club FAQ
Breaking News
There have been some major developments over the past few months in the
CD club world:
BMG launched its online club BMG eClub. No more monthly paper
mailings. Everything is done online except of course the delivery of
the CDs themselves. Bill payment can still be done via US Mail.
BMG introduced "Music Points": a frequent buyer program or more aptly
a membership loyalty program. For certain CD and cassette purchases, a
member receives a certain amount of points. These points accumulate
and can be used to purchase full priced music products on a 1 for 1
basis. "Music Points" can not be used for partial payment of a
selection or for payment of shipping and handling or sales taxes.
BMG closed its daughter club CDx and transfered the CDx membership list
to BMG.
Columbia House brought its club CDHQ back from the dead and dusted off
its main moniker, Columbia House. Both CH and CDHQ (this revision of
the FAQ is way overdue) advertised "12 CDs for the price of 1 CD"
offers. For those scoring at home, Columbia House now has three
distinct clubs again: CH, PLAY and CDHQ. As the three clubs have the
same operational characteristics, the three will be treated as one by
the designation CH/CDHQ/PLAY in the FAQ.
In a more recent development, Columbia House and online retailer CDNow
agreed to merge. According to published reports, this will have no
effect on CH club operations, at least for the time being. Once the
merger has gone through, Columbia House will be owned by a partnership
of the two previous partners, Time Warner and Sony, plus the new
partner CDNow.
-----------------------------------------------------------------
Table of Contents
I. Introduction
II. Join, Fulfill, Quit, Repeat - In Brief
A. Deciding to Join
B. Joining
C. Fulfilling
D. Quitting
E. Repeat
III. Customer Service Center Information
A. Reasons to contact a Customer Service Center
B. BMG Music Club
+C. Columbia House Music Club/CDHQ/play from
columbia house
+[removed]
IV. More In-depth Information
A. Getting the most CDs for your $$$
B. Declining the Selection of the Month
C. Available New Membership Offers
D. Membership Costs
E. Club Catalogs
F. The Quality Debate
G. Club "Re-Mastering" Statements
H. Resale Value
I. Ethical Issues
J. Clubs collecting Sales Taxes
V. Other
A. CD Club Related Sites
B. About the Maintainer
Appendix - CD Clubs in Canada
-----------------------------------------------------------------
I. Introduction
****************
+The CD Club FAQ is about how to get the best value from a membership in
any of the two major US/Canadian audio CD Club families: the
Bertelsmann Music Group and the Columbia House Music Club. The
Bertelsmann Music Group includes the basic BMG clubs (BMG Music
Service, BMG Classical Music Service, BMG Jazz Club, and "Sound and
Spirit") (all abbreviated as BMG) and BMG Canada. The Columbia House
Music Club family includes Columbia House (CH), CDHQ, "play from
columbia house" (PLAY), Columbia House Canada, and CDHQ Canada.
The FAQ has five sections (I-V) and an Appendix. It is published in
two parts: 1 (I-IV.D.) and 2 (IV.E.-Appendix). The Appendix has
information specific to the Canadian CD clubs.
+It is posted about every two weeks to rec.music.misc and
rec.music.collecting.cd. HTML versions of the FAQ can
be found at 'http://www.blooberry.com/cdfaq/' and
'http://my.voyager.net/~bpvh/cdclubs'. The current version of the
Appendix can be found at
'http://www.musicbymailcanada.com/cdclbs.html/'
This FAQ is Copyright (c) 1994-1999 by Brad von Haden
+ a '+' signifies a change from the previous version (which was 4.20).
II. Join, Fulfill, Quit, Repeat - In Brief
*******************************************
A. Deciding to Join
====================
+In choosing your initial new membership titles, do not despair if you
can not find enough titles in the advertisement to your liking; you are
not limited to just those titles. To find out what other titles BMG
and CH/CDHQ/PLAY carry:
[1] browse the online catalogs:
BMG Music Service:
official : www: http://www.bmgmusicservice.com/
unofficial: www: http://www.cd-clubs.com/
+CH Music Club / CDHQ / play from columbia house:
official : www: http://www.columbiahouse.com/
unofficial: www: http://www.cd-clubs.com/
+[removed]
BMG Classical Music Service:
official : www: http://www.bmgmusicservice.com/
unofficial: www: http://www.cd-clubs.com/
unofficial: ftp: ftp://ftp.gmd.de/ in
music/cd-catalogs/bmg-classical-collection.gz
+BMG Sound & Spirit
official : www: http://www.bmgmusicservice.com/
unofficial: www: http://www.cd-clubs.com/ and
http://www.users.csbsju.edu/~eknuth/bmg-ccm.index.html
[2] peruse a friend's club bulletin/catalog
[3] request a catalog from the club's customer service center
[4] check magazines and newspapers for other club advertisements
B. Joining
===========
Best Current Offers:
+BMG : 12 CDs for the price of 1 CD, nothing more to buy, ever
(get 7 free, buy 1, get 4 more free)*
+CH : 12 CDs for the price of 1 CD, nothing more to buy, ever
(get 7 free, buy 1, get 4 more free)*
+CDHQ: 12 CDs for the price of 1 CD, nothing more to buy, ever
(get 7 free, buy 1, get 4 more free)*
+PLAY: 12 CDs for 1 cent, buy 6 more to fulfill
(get 12 free, buy 6 more)*
+[removed]
+* - A shipping and handling charge is applied to each
shipment, including the shipment of free selections.
+The initial shipment of CDs usually takes 3-6 weeks. Once a member,
orders usually take 2-4 weeks. Member orders placed via the clubs' WWW
sites usually arrive in less than 2 weeks.
Each club reserves the right to reject a prospective member and to
cancel an offer without notice.
C. Fulfilling
==============
+To fulfill the membership purchase requirement, purchase the required
number of CDs in the allotted time. Single CDs that count as one
purchase toward the membership purchase requirement are priced at least
$14.98 for BMG and at least $12.98 for CH/CDHQ/PLAY. Only regular
priced titles count toward fulfilling the membership purchase
requirement; free and sale priced CDs do not count:
An offer that includes a regular priced title, such as 'buy 1,
get 2 free', does count the 'buy 1' title toward fulfilling the
membership purchase requirement.
An offer without a regular priced title, such as '66% off
everything' would usually not have any title count toward
fulfilling the membership purchase requirement.
+Other than paying the bills and fulfilling the membership purchase
requirements within the allotted time period, a club member's main
responsibility is to decline the selection of the month in a timely
fashion, assuming he/she does not wish to receive it. This can be done
by returning the monthly selection cards, by using the club's official
web sites decline option or by contacting the club's customer service
center by telephone or email.
If you receive a CD that is either received in error (unwanted monthly
selection or wrong CD shipped by the club) or flawed (CD or packaging)
contact the club's customer service center. If required to return the
item, ask for a pre-paid return mailing label. If the CD's shipping
package has yet to be opened, just write "Refused: Return to Sender" on
the outside of the package and return it to the club postage free via
US Mail.
D. Quitting
============
Once the membership purchase requirements have been fulfilled, contact
the club's customer service center (be sure to include your account
number) or just return a monthly selection card with PLEASE CANCEL MY
MEMBERSHIP written on it. Prior to the club cancelling your
membership, you might receive another monthly mailing. Ignore the
monthly selection reply card. The club will probably send notification
when it has processed the cancellation.
E. Repeat
==========
BMG has a one membership, per person, per year restriction.
III. Customer Service Center Information
*****************************************
A. Reasons to contact a Customer Service Center
================================================
- Request an application
- Inquire about the availability of a title or an artist
- Request a print catalog:
BMG: 'Music Central'
BMG Classical: 'Encore: The Collector's Guide'
CH/PLAY: 'A to Z Music Guide'
+[removed]
- Place an order (This can be faster than mailing in the reply
card.)
- Check on the status of an order
- Decline/accept the Selection of the Month (see IV. B.)
- Received an unordered/unwanted selection (see II. C.)
- Received a flawed selection (see II. C.)
- Received a selection with a broken jewel case - request
replacement jewel case
- Request change of preferred music category
- Request your address be removed from Mailing Lists going to
outside companies (see IV. I. 4.)
- Going on vacation - Request that account be suspended until
return
- Request to be placed on the "positive option" plan (see IV. B.)
- Other questions or problems
- Cancel membership (see II. D.)
Note: When writing to a club's customer service center by
US Mail or email, include your name, complete US Mail
address, and club account number (if already a
member).
B. BMG Music Club
==================
Mail : BMG Music Service
Customer Correspondence
PO Box 1958
Indianapolis, IN 46291-0010
BMG Classical Music Service
Customer Correspondence
PO Box 91119
Indianapolis, IN 46291-0050
+Phone: (317) 692-9200
M-F: 8 AM - 6 PM ET
(317) 542-6090 (FAX)
+Email: cs1@bmgdirect.com
classical@bmgdirect.com
Note: BMG gives preference to customer service center
requests entered from its web site.
+WWW : http://www.bmgmusicservice.com/
http://www.bmgclassicalclub.com/
http://www.bmgjazzclub.com/
http://www.sound-and-spirit.com/
C. Columbia House Music Club / play from columbia house
========================================================
Mail : Columbia House Music Club (or) play from columbia house
1400 North Fruitridge Avenue
Terre Haute, IN 47811-1130
Phone: (800) 457-0500 or (812)242-7500
M-F: 5 AM - 8 PM ET
SAT: 6 AM - 2 PM ET
(800) 562-4046 (automated order line)
Email: customer_service@columbiahouse.com
70007.1604@compuserve.com
WWW : http://www.columbiahouse.com/
: http://www.playfromcolumbiahouse.com/
+[removed]
IV. More In-depth Information
******************************
Questions Answer Sections
========= ------ --------
Can I rejoin the club if I quit? yes. IV.A.[1]
Are the club CDs as good as the store ones? open. IV.F,G,H
Can I order from back issues of the catalogs? yes. IV.E
Can I use numbers from catalogs to order from ads? yes. IV.E
Should I use the half-price coupons? no. IV.A.[1]
Can I order Boxed sets through the introductory offer? depends IV.A.[7]
When is it legal for the club to charge sales tax? see below. IV.J
How do I stop getting these cards every month? see below. IV.B
What if they send me a CD that I don't want? return it. II.C
What do I do with a defective CD? return it. II.C
Where did all this junk mail suddenly come from? surprise! IV.I
How are the Canadian and US CD Clubs different? see below. App.
A. Getting the most CDs for your $$$
=====================================
[1] The Golden Rule: Join, Fulfill, Quit, Repeat. Do *not* use their
so-called "special member deals", like buy-one-at-half-price. Want
more CD's? Quit and rejoin!
BMG has a one membership, per person, per year restriction. As the
restriction is per person, per year, each person at an address
should be able to have one membership per year. One suggestion:
while a member, use the 'join a friend' offer to sign someone else
up at the same address. The current member, after fulfilling the
membership, quits and uses the 'friend's' membership. Repeat.
Please keep in mind the above BMG membership restriction when
reading the next two paragraphs.
+The stated policy of BMG and CH/CDHQ/PLAY is that they reserve the
right to refuse any application. I have been a member of BMG and CH
many times, a member of CDHQ once, had a CDx membership converted to
BMG, and had my old CH and CDHQ memberships converted to PLAY
memberships. As the clubs usually offer preferred memberships to
members who have quit or allow past members to rejoin on their own,
the clubs' policy evidently is to allow former members in good
standing to join, fulfill, quit (repeat) at will.
After quitting, the club might ask you to rejoin by mail and/or by
phone. Be forewarned: the offers to return may not be the best
offers then available from the clubs.
+[2] Wait for a 'buy 1, get 2 free' offer or even a 'buy 1, get 3 free'
offer (BMG only) to fulfill the membership purchase requirements.
This should happen within the first six months of membership.
In each 'buy 1, get X free' offer, the 'free' selections must be of
equal or lesser value than the purchased selection. If a CD of
greater value is chosen as a free selection, the club will designate
it as the purchased CD - and bill you for the higher amount - and
designate the other CDs in the offer as the free selections.
+[3] In the past, the clubs have come out with their best offers around
the New Year. This has not held true the past couple of years.
+[4] When joining a club, considering joining as a friend of a current
member. This usually results in a better deal when joining BMG and
might result in a better deal when joining CH, CDHQ or PLAY. It is
important to compare the current new member offers to the current
'join a friend' offers. If the new member offer only requires the
purchase of 1 CD at full price to fulfill the membership purchase
requirement and the 'join a friend' offer requires the purchase of 6
CDs at full price to fulfill the membership purchase requirement, do
not use the 'join a friend' offer.
+BMG calls their 'join a friend' offer "Member-Get-A-Member". BMG's
standard 'join a friend' offer is '12 CDs for the price of 1 CD,
nothing more to buy' for the joining member and 4 free CDs for the
sponsoring member. This is a good deal for the joining member if
the sponsoring member is willing to 'give' at least one of his/her
free CDs to the joining member. BMG's best 'join a friend' offer is
'12 CDs for the price of 1 CD, nothing more to buy' to the joining
member and 5 free CDs to the existing member (catalog n/94/O). This
is a good deal for the joining member if the sponsoring member is
willing to 'give' at least one of his/her free CDs to the joining
member.
+The 'join a friend' offers from CH/CDHQ/PLAY usually require the
purchase of 6 CDs at full price to fulfill the membership purchase
requirement. When these clubs are advertising new member offers
that only require the purchase of 1 CD at full price to fulfill the
membership purchase requirement, the 'join a friend' offers from
these clubs are NOT recommended.
+[removed]
+[5] If you can map out all the CD selections required to fulfill the
membership when joining, you can save a couple of dollars by
choosing the more expensive CDs as the free selections and the less
expensive CDs as the purchase/fulfillment selections. CDs that
fulfill the membership purchase requirements are regular priced CDs
over $12.98 for CH, CDHQ and PLAY; and over $14.98 for BMG.
[6] As all the clubs allow more than one membership per address, each
spouse, sibling, roommate, etc., can have his/her own membership.
BMG allows up to five memberships under different names per address.
[7] Getting good deals on multiple-CD sets.
BMG allows most multiple-CD sets as free or sale selections:
introductory, buy-1-get-X-free, 60% off, etc. The searchable
catalog at BMG's web site has most multiple-CD sets marked as
"unavailable as free selection". In contrast, the printed paper
catalogs have almost every multiple-CD set of 5 CDs and less
unmarked (and thus available as free or bonus selections). My
advice: follow the more generous printed catalogs markings and
join/order via US Mail.
+CH/CDHQ/PLAY only allow some two-CD sets as free or sale selections.
+[removed]
For introductory offers, place the selection number of the N-CD set
in one of the entry blocks and leave (N-1) of the entries blank.
For example, ordering a three-CD set would require leaving two
selection entry boxes blank.
In non-introductory offers, multiple-CD sets are treated similarly
to single CD titles: the free or discounted CD sets must be of
equal or lesser value than the purchased CD set. For example, in
the 'buy 1 CD, get unlimited CDs at 80% off' offer, the most
expensive CD or CD set in the order will be designated by the club
as the "purchased" selection and charged at full price regardless of
the selection's position on the order form.
B. Declining the Selection of the Month
========================================
You will generally not want the selection-of-the-month. There are
several ways to decline the selection of the month:
[1] return the monthly selection card
+[2] go to the club's web site and use the decline option
+[3] contract the club's customer service center by email or
telephone.
[4] use the club's automated order line
If contacting the customer service center by email, please include your
name, complete address, club account number and one of the following:
monthly selection's title, monthly selection's selection number, or the
monthly flyer's sale cycle identification code (e.g. n/nn/n).
If you receive a selection of the month that you don't want you have
two options:
[1] If the mailer has not been opened, write "Refused: Return to
Sender" on the mailer and return it, postage free, via US Mail.
[2] If you have opened it, contact the club's customer service
center and request a pre-paid return mailing label.
If you return too many CDs without cause, the club may cancel your
membership.
+If you have fulfilled the membership purchase requirements and you
don't want to worry about receiving another unwanted selection of the
month, contact the club's customer service center and request that you
be placed on the plan where they don't automatically assume you want
the selection of the month. This is called a "positive option" plan:
you will continue to receive the monthly mailings, but will not receive
a CD unless you order it.
CH and CDHQ call this the "on order only list". I am not sure what BMG
calls this but if you explain it to the customer service agent, he/she
should understand. This does not apply to PLAY as all PLAY memberships
are "positive option" from the start.
If you follow the "join-fulfill-quit-repeat" algorithm, you will not be
in the club long enough to need this plan.
C. Available New Membership Offers
===================================
Offers vary throughout the year. Some are only available for a limited
time or through exotic sources. The ads can even vary between
different printings of the same edition of the same magazine. If you
read the fine print, some will forgo shipping charges. Here are some
of the offers. The list is by no means exhaustive:
BMG:
12 CDs for the price of 1 CD, nothing more to buy, ever
[get 7 free, buy 1, get 4 more free]*
(web site, current)
+(Rolling Stone, 18 Mar 99)
Missing Application Address:
BMG Music Service
P.O. Box 91001
Indianapolis, IN 46291-0002
+Columbia House
+12 CDs for the price of 1 CD, nothing more to buy, ever
[get 7 free, buy 1, get 4 more free]*
(Sound&Vision, Feb/Mar '99)
+11 CDs for one red cent
[get 11 for $.01 + $1.49 fee, buy 6 more]*
(Rolling Stone, 11 Jun 98)
+Missing Application Address:
Columbia House
1400 North Fruitridge Avenue
Terre Haute, IN 47811-1130
+CDHQ
+12 CDs for the price of 1 CD, nothing more to buy, ever
[get 7 free, buy 1, get 4 more free]*
(Parade Magazine TV insert, 14 Feb 99)
(a recent TV Guide)
+play from columbia house
12 CDs for free
[get 12 for free, buy 6 more]*
(web site)
12 CDs for one cent
[get 12 for $.01 + $1.49 fee, buy 6 more]*
+(Rolling Stone, 01 Apr 99)
3 CDs for $4.95 each! No Risk! No Obligation
[get 3 for $14.85, buy 0 more]*
(Stereo Review, Nov 98)
(800-650-3700 Dept. BW1 credit cards only)
(at bottom right of reply card: BW1-7Y SH1/F98)
+Missing Application Address:
play from columbia house
1400 North Fruitridge Avenue
Terre Haute, IN 47811-1130
+[removed]
+* - A shipping and handling charge is applied to each
shipment, including the shipment of free selections.
Some offers include an option to purchase "bonus" CDs. These are
usually good deals. The test is whether the bonus CDs would lower the
average CD cost of the total membership.
In the advertisements with most offers, there is an address to write to
if the reply card is missing. If it is a particularly good offer, it
might be worthwhile to write a letter to the listed address stating
that the reply card is missing (even if it isn't) and requesting a copy
of the reply card. In the letter, include the name of the offer, the
source of the ad and a return address. You could try contacting the
club's customer service center for a copy of the offer but this does
not always succeed.
D. Membership Costs
====================
1. New Membership Offers
BMG '12 CDs for the price of 1 CD, nothing more to buy, ever',
using a 'buy 1, get 2 free' offer to fulfill
Order CD Shipping Sales Sub-
Shipment Price & Handling Tax (5%) Total
======== ===== ========== ======== =====
get 7 free FREE $17.03 $0.85 $17.88
buy 1, get 2 free $16.98 7.47 1.22 25.67
get 4 more free FREE 9.86 0.49 10.35
----- ----- ---- -----
16.98 34.36 2.56 53.90
===== ===== ==== =====
Number of CDs = 14
Total Cost = $54.86
Cost per CD = $3.92
+CH/CDHQ '12 CDs for the price of 1 CD, nothing more to buy,
ever', using a 'buy 1, get 2 free' offer to fulfill
Order CD Shipping Sales Sub-
Shipment Price & Handling Tax (5%) Total
======== ===== ========== ======== =====
get 7 free FREE $16.73 $0.84 $17.57
buy 1, get 2 free $16.98 7.17 1.21 25.36
get 4 more free FREE 9.56 0.48 10.04
----- ----- ---- -----
16.98 33.46 2.53 52.97
===== ===== ==== =====
Number of CDs = 14
Total Cost = $52.97
Cost per CD = $3.78
+PLAY '12 CDs for free, buy 6 more to fulfill' using 'buy 1, get 2
free' offers to fulfill
Order CD Shipping Sales Sub-
Shipment Price & Handling Tax (5%) Total
======== ===== ========== ======== ======
get 12 free FREE $28.68 $1.43 $30.11
Bonus Offer 6.98 4.78 0.59 12.35
buy 1, get 2 free 16.98 7.17 1.21 25.36
buy 1, get 2 free 16.98 7.17 1.21 25.36
buy 1, get 2 free 16.98 7.17 1.21 25.36
buy 1, get 2 free 16.98 7.17 1.21 25.36
buy 1, get 2 free 16.98 7.17 1.21 25.36
buy 1, get 2 free 16.98 7.17 1.21 25.36
------ ----- ---- ------
108.86 76.48 9.28 194.62
====== ===== ==== ======
Number of CDs = 32
Total Cost = $194.62
Cost per CD = $6.08
+[removed]
+Note: Stamps are no longer required for BMG and
CH/CDHQ/PLAY. Orders can be paid for by credit card
via the web site or a toll free call.
2. Shipping & Handling (Single CD Selections per order):
BMG:
First CD : $2.59
Second CD : 2.49
All others: 2.39 each
+CH/CDHQ/PLAY:
Each CD : $2.39
+[removed]
E. Club Catalogs
==================
There are many sources for the selection numbers of the CD titles
carried by the clubs. These include advertisements, monthly flyers,
catalogs, and the customer service centers. The problem with the ads,
flyers and catalogs is that they are not comprehensive. The problem
with the customer service centers are, while they are the definitive
sources, it is inconvenient to have to call them all the time.
+Thankfully, there are online catalogs. BMG and CH/CDHQ/PLAY have
official web sites with searchable catalogs including almost all club
CDs. An unofficial site, www.cd-clubs.com, has searchable and
downloadable catalogs for BMG and CH/CDHQ/PLAY.
The catalogs of the same named club from two different countries (e.g.
BMG US and BMG Canada) are not the same.
Canada members can not order from or get selection numbers from US catalog and vice versa.
BMG Music Service:
official : www: http://www.bmgmusicservice.com/
unofficial: www: http://www.cd-clubs.com/
CH Music Club / play from columbia house:
official : www: http://www.columbiahouse.com/
unofficial: www: http://www.cd-clubs.com/
BMG Classical Music Service:
official : www: http://www.bmgmusicservice.com/
unofficial: www: http://www.cd-clubs.com/
unofficial: ftp: ftp://ftp.gmd.de/ in
music/cd-catalogs/bmg-classical-collection.gz
+BMG Sound & Spirit
official : www: http://www.bmgmusicservice.com/
unofficial: www: http://www.cd-clubs.com/ and
www: http://www.users.csbsju.edu/~eknuth/bmg-ccm/index.html
Selection numbers are generally good indefinitely. Titles do become
unavailable for two main reasons: lack of demand or lapse of license
to sell the title. If demand is too low, it might be uneconomical for
the club to do another pressing of the title. If the license to sell
lapses, and the club can not renew the license for the title with the
artist/label, the club may not continue to sell the title.
Selection numbers from most any source (advertisement, monthly flyer,
catalog, etc) can be used when ordering CDs from the clubs. BMG's 5, 6
and 7 digit selection numbers are interchangeable. To convert a 7
digit selection number to 5 digits, lop off the first and last number.
To convert a 7 to a 6, lop off the last number. To convert a 6 to a 5,
lop off the first number. Here's an example:
Eric Clapton's "Cream of Clapton"
Seven digit code (from current listing) : 1082411
Six digit code (from main print catalog) : 108241
Five digit code (from magazine advert) : 08241
+[removed]
+CH's, CDHQ's and PLAY's catalogs and selection numbers are identical.
The artists and titles in the clubs are dependent on the contracts
between the clubs and the record labels and on the contracts between
the record labels and the artists. If a label has a contract with a
club, most of that label's new artist contracts will include a clause
allowing the label to license the artist's work to the club.
F. The Quality Debate
======================
There is a ongoing, unending debate as to whether CDs purchased through
the clubs are of as high a quality as those purchased in retail stores.
The 'bits is bits' faction argues that the several tests that have
compared the binary data on retail vs. club CDs have found no
differences in the data. The 'golden ears' faction argues that while
most club CDs sound the same as their retail counterpart, some club CDs
sound vastly inferior.
An interesting middle ground is that even if the binary data is the
same, CDs pressed at different plants may sound different. This
applies to retail vs. club CDs as well as retail vs. retail CDs.
(Depending on the popularity of a title, retail CDs of that title may
be pressed at more than one plant.)
Some reasons for this include:
[1] The CDs may contain physical anomalies. The anomalies could
effect the servo load, which could effect the power supply,
which could cause jitter and thus cause a sonic difference.
[2] They may be mastering the CDs at double or quad speed. This
could lead to increased on-disc jitter.
As to the clubs ability to press CDs, consider that the clubs are parts
of media conglomerates that also own 3 of the 6 largest families of
recording labels and a sizable percentage of the CD pressing capacity
on the planet:
Company Clubs Labels Pressing
======= ===== ====== ========
+Bertelsmann AG BMG Arista, RCA Records Sonopress
Sony CH/PLAY* Columbia, Epic Sony Disc Manu.
Time Warner CH/PLAY* Atlantic, Elektra WEA Manufacturing
+* - CH/CDHQ/PLAY are owned by a 50/50 joint venture of Sony
and Time Warner.
There are several other club "quality" issues:
[1] Re-masters/re-releases. While these will show up in stores
immediately, it may take sometime to show up in the clubs. The
time lag allows the club to sell out its inventory of the old
versions.
[2] Older/lesser quality binary masters. It is possible that the
clubs do not get the BEST version of the album, or are unwilling
to buy the newer version.
[3] "Mastered down" artwork. In a small number of cases, club CDs
have suffered from omitted liner notes, a poorer quality image
on the booklet, or foldout posters shrunk down to the size of
the normal booklet. Also note that index marks have been left
off a small number of BMG Club CDs.
G. Club "Re-Mastering" Statements
==================================
H.W. Neff and Dave Datta received this information from BMG and
Columbia House and was current in 1991. It is included in this FAQ
without permission from the clubs but with permission from Mr. Neff.
Messrs. Neff and Datta had permission from the clubs to include the
information in their FAQ. Mr. Neff, after reading this FAQ supplied me
with the following information:
Several times the question has been raised about the remastering
of material by the clubs. A written query was made. Posted
here, with permission, is the bulk of each response:
BMG Music Club:
THE COMPACT DISC CLUB MANUFACTURES SELECTIONS UNDER RIGID
SPECIFICATIONS AND WARRANTS THAT PRODUCTS ARE FREE FROM
DEFECTS. SELECTIONS ARE REPRODUCED ACCORDING TO AGREEMENTS
WITH THE ARTISTS. MOST SELECTIONS ARE THE SAME AS THAT SOLD
IN STORES. IF THERE IS A CHANGE MADE IN THE MASTER COPY,
THIS IS DONE ONLY BY AGREEMENT WITH THE ARTIST.
CBS Music Club:
In reply to your question about the mastering of CD's,
Columbia House takes the material as it comes to us from
the licensor and we duplicate it in the manufacturing
plants of Digital Audio Disc Corporation in Terre Haute or,
in some cases, at the Warner Communications duplicating
facilities in Pennsylvania. We do not ourselves re-master
any product nor do we attempt -- or in fact are permitted -
to make any changes in the master.
H. Resale Value
================
+BMG replaces the UPC label on most every CD they sell with the title's
club selection number and the words "Mfd. for BMG Direct Marketing,
Inc. under license". They sometimes also print the CD's selection
number on the included booklet and the CD itself. This is pretty
conspicuous. I have found BMG disks in the used bins at pawnshops and
have known that I could order them new from BMG at a lower price than
they were asking. Some used-CD stores refuse to accept BMG Club CDs.
+CH/CDHQ/PLAY mark most of their CDs by adding the letters "CRC"
(Columbia Record Club) somewhere in the artwork seen through the back
panel of the CD case or on the UPC label, or by adding the statement
"Manufactured by Columbia House Under License".
Penny Lane Records, Tapes and Compact Discs of Los Angeles, CA, has
instituted a club CD purchase program. Penny Lane will pay $6.00 per
factory sealed club CD on its in-house top 50 chart. Please be advised
that the clubs are considering legal action against Penny Lane.
I. Ethical Issues
==================
1. Join, Fulfill, Quit, Repeat
Some readers have questioned whether its ethical to use the
"join, fulfill, quit, repeat" algorithm, and some have even
questioned whether its ethical to publish information about it.
While you will of course have to decide for yourself, my view is
that it is OK: if the clubs did not want us to do it, they would
put a stop to it. BMG has already specifically restricted the
use of the algorithm by limiting membership to one, per person,
per year.
2. Economics of club offers
We make this offer simply because experience has shown
that it is a sound, economical way to acquire new
friends for the BMG Music Service. Many of our members
continue with us for three, five, even ten years. We
make a fair profit while you keep on saving.
- Oren Testa, BMG vice president (circa ?), on the
super deals
I would contend that the clubs make money, or at least
break-even, on all deals, except the historical "12 CDs for 1
penny" offer from BMG. Here is an analysis of club CD Costs:
Free/Bonus Regular
--------------------- ---------- ---------
Pressing $ 0.60 $ 0.60
Artwork 0.40 0.40
Royalties
- normal 0.00 1.60-4.00
- mechanical 0.26-0.52 0.26-0.52
shipping 0.28-0.70 0.70
advertising 0.65 0.65
overhead 1.00 1.00
---------- ---------
3.19-3.87 5.21-7.87
========== =========
The above figures, while not necessarily accurate, do have some
basis in reality:
- pressing costs come from a BMG press release in which the
CEO of BMG Entertainment Storage Media, Uwe Swientek, states
the existing cost to its customers for a CD is sixty cents
($0.60).
- artwork cost is a plug figure; $1.00 seems to be the going
rate for large press runs of finished CDs including artwork.
- royalty costs come from an article in "Billboard" magazine
("Record Clubs: An Inside Look At An Evolving Enterprise",
30 March 1996.)
- shipping costs come from the USPS's Postal Rate Guide for
"Special Standard Mail"; the clubs might have contracted for
a lower price.
- advertising cost is a guesstimate: sales of $1.15 billion
divided by average price of $5 per CD equals 230 million
club sales; industry estimated advertising of $150 million
divided by 230 million sales equals $0.65 per CD.
- overhead costs -- the costs of servicing the membership
accounts (monthly mailings, staffing, warehouse facilities,
web site, etc) -- is another guesstimate. As it is unlikely
the clubs are losing money on their 'buy 1, get 3 free'
offers, the average CD cost to the clubs needs to be less
than $6.61 ((16.99+2.49+2.39+2.29+2.29)/4).
3. Royalty payments to artists
Artists do not receive full royalty payments for CDs sold through
the clubs. While the percentage of his/her royalty an artist
receives on club sales is dependent on the artist's contract with
its label, generally an artist will receive no royalties for CDs
sold as "free or bonus" selections and only one-half their normal
royalty rate for CDs sold as full priced selections. (see
Shemel, Syndey. "This Business of Music". 1990. 61)
An artist, if successful and unhappy with the "club clause" of
his/her contract, can renegotiate his/her contract with his/her
label to either restrict (certain albums not available or longer
time between street and club release) the artists offerings in
the clubs or eliminate the artists offerings in the clubs all
together.
4. Direct Mail Marketing
The clubs make money by selling member's addresses to various
junk ... direct mail marketing companies. They call this a
"benefit" - giving you the opportunity to order all sorts of
"neat" stuff. To remove your name from the sold lists, contact
the club's customer service center and request to be removed from
their direct mail list.
J. Clubs Collecting Sales Tax
==============================
A state can not compel a company from another state to collect and
remit sales (use) taxes on sales to that state unless the company has a
"physical presence" in that state. (see National Bellas Hess, Inc. v.
Department of Revenue of Illinois, 386 U.S. 753 (1967) and Quill Corp.
v. North Dakota ex rel. Heitkamp, 112 S. Ct. 1904 (1992))
While having a retail outlet or owning real property are clearly
"physical presences", the U.S. Supreme Court has ruled that the
"physical presence" test can be satisfied by as little as one employee,
or even independent contractor, entering a state to sell or perform a
service. On the other hand, mail order solicitation, shipping a
product via a common carrier (e.g. US Mail), or the presence of an
affiliated entity in the state have been ruled to not be "physical
presences".
If your state has a sales tax (in-state purchases), it most likely also
has a use tax (out-of-state purchases). While the state may not be
able to compel an out-of-state company to collect and remit use taxes
on sales to that state, the state can compel its citizens to pay a use
tax on out-of-state purchases. In other words, you are responsible for
paying the tax either to the company or to the state. Fortunately for
us, most states have much more pressing problems than trying to enforce
collect of use taxes from its residents. Unfortunately, states have a
vested interest in collecting use taxes from out-of-state companies,
especially those that sell substantial amounts of goods.
The clubs claim that they only collect and remit sales taxes to states
where it is required by the state in question.
V. Other
*********
A. CD Club Related Sites
=========================
1. CD Club FAQ sites:
a. Primary WWW site -- http://www.blooberry.com/cdfaq/
b. Secondary WWW site -- http://my.voyager.net/~bpvh/cdclubs/
2. Other unofficial CD club sites:
a. the cd club web server -- http://www.cd-clubs.com/
1) searchable and downloadable club catalogs
2) Members Lounge -- ask club-related questions, receive
answers
3) The FAQ -- a CD club FAQ in question/answer format
4) links to CD club and music related sites
+b. Canadian Appendix to the CD Club FAQ --
http://www.musicbymailcanada.com/cdclbs.html/
3. Official CD club sites - US
a. BMG -- http://www.bmgmusicservice.com/
+b. CH/CDHQ/PLAY -- http://www.columbiahouse.com/
4. Official CD club sites - rest of North America
a. BMG Canada -- http://www.bmgmusicservicecanada.com/
b. Columbia House Canada -- http://www.columbiahousecanada.com/
c. Columbia House Mexico -- http://www.columbiahouse.com.mx/
+d. CDHQ Canada -- http://www.cdhqcanada.com/
B. About the Maintainer
========================
+Let me introduce myself. My name is Brad von Haden and I can be
reached via email at bpvh@voyager.net. I have been a member of a BMG
Club since the mid-80's (currently a member of both the popular and
Classical divisions), a member of Columbia House since 1993 (now PLAY),
a member of CDHQ since March 1996 (now PLAY also), a member of CDx (now
BMG) since February 1998, and a member of PLAY through conversion since
July 1998. My only affiliation with the clubs is as a member.
This FAQ was originally maintained by Carl Ponder. Much of the
information contained in the FAQ was compiled by him. So when there is
a personal pronoun, it means either Carl or myself.
If you have any information (new, corrections, or whatever) or
questions pertaining to the FAQ, please contact me. If you have
information or questions relating to the operation of the sites (HTML
conversion, online catalogs, etc) please contact the site maintainers.
Sincerely,
Brad von Haden
p.s. Carl Ponder offered thanks to Malcolm Humes, James Fowell,
Glenn Lea, Troy Biles, Bob Neidorff, Jerry Dallal, Victor
Ortega, Benn Tannenbaum, Bob Retelle, Bruno Fernandes, and all
the dedicated readers of "rec.music.cd" who have provided me
with so much invaluable information.
p.p.s. My thanks, especially to Carl Ponder, the original maintainer,
for all his hard work, and to all those mentioned by Carl,
plus Scott Clark, H.W. Neff and Dave Datta, and Hugh Chou,
Jason Hirschhorn, Rob McIntyre, Mark Ramsey, Michael Santos,
Martin Stern, Eric Stauffer, Brian Wilson and Yi-Shin Wu.
Copyright (c) 1994-1998 by Brad von Haden
_________________________________________________________________
+Appendix A. CD Clubs in Canada (12 March 1999)
I. COLUMBIA HOUSE MUSIC CLUB (Canada)
5900 Finch Avenue East
Scarborough, Ontario
M1B 5X7
Customer Service : (416) 299-8181 (10am to 4pm EST, Mon-Fri)
FAX : (416) 299-2745
Email : cm_customer_service@columbiahousecanada.com
Online Catalog : http://www.columbiahousecanada.com/play
Add. Contact Info: 24h Automated Order Line (416) 299-3278
with customer service 8am-8pm EST with "0"
The CH Video Club 900 Order Line will take
orders from members who are in both clubs.
1-900-451-5006 ($1/call 8am-8pm EST, Mon-Fri)
Play Automated Order Line - 1-877-ALL-PLAY
(automated line available only to Play members)
* Version Frangaise - www.maisoncolumbia.com *
* cf_service_des_clients@maisoncolumbia.com *
A. Compiled by Rob McIntyre (ck580-freenet.carleton.ca)
-- Standard Deal
("Play" is now the standard deal)
"12 CDs for 1"" : + 0.99 per selection shipping/handling with
optional purchase of 13th selection at $6.95. All items are taxed,
GST and where applicable, PST. Maritime province customers subject
to HST.
-- Membership Agreement
Purchase of six CDs (or five with the optional 13th selection at
enrollment) at regular club prices within two years, regular club
price ranging from $14.98 (older selections and eps) to $18.98
(newer selections). Most CDs are $18.98.
Please note that the purchase of the optional 13th selection
entitles a member to a 14th selection free (s&h extra).
-- Breakdown (without taxes)
(may vary depending on purchases after enrollment)
Cost of first cds inc. s&h & optional 1st purchase --- $ 20.81 -
Cost of mandatory five cd purchase at $18.98 per CD --- 94.90 -
Cost of shipping and handling for mandatory CDs --- 11.95 -
-------------------------------------------------------- -------- -
Total $ 127.66 -
Divided by number of CDs obtained d 19 -
-------------------------------------------------------- -------- -
Per CD price $ 6.72 -
-- Additional Discounts
(subject to change)
New members are immediately registered at "Savings Level 1". At this
level, the member, with the purchase of a regular priced CD, may
purchase a single CD, of equal or lesser value, at half price.
Once the membership agreement has been fulfilled, the member is
promoted to "savings level 2", in which a member, with the purchase
of a regular priced CD, may purchase a single CD of equal or lesser
value for $7.99.
After the second regular priced CD purchase at this level, the member
is promoted to "savings level 3". At this level, the member, with the
purchase of a regular priced CD, may purchase a single CD, of equal
or lesser value, for $5.99.
There are also special discounts and specials for members that use
their web site. Details can be found at their official web site.
-- Shipping and handling
(subject to change)
Single CD selections - $2.39
Double CD selections - $3.39
Boxed set selections - $2.39 + $1 per additional unit
Video selections - $2.99
-- Returns
Selections that are faulty or have been damaged during shipping may
be returned within 30 days with an explanation. Shipments resulting
from errors can also be returned within 30 days with an explanation
only if the CD is not opened.
CH reserves the right to cancel anyone's membership if they decide the
member has "an excessive number of returns".
Unwanted parcels should not be opened. These can be sent back to the
company by writing "Return to Sender" on the parcel, preferably
inbetween the return address and your address, in bold, clear text,
though it should be noted that these incidents are less likely to
happen now with Play, where members are not required to send their reply
cards in unless they wish to place an order.
-- Cancelation of Membership and Positive Response Program
CH only accepts requests for a cancelation after a member has fulfilled
the membership agreement. Written requests only.
Play members are now by default on a positive response program.
--
II.BMG MUSIC SERVICE (Canada)
Box 6030
Mississauga, Ontario
L5A 4H9
Customer Service : (905) 568-1581 (8am-5pm EST, Mon-Fri)
FAX : (905) 712-2553
Email : getmusic@bmgdirect.com
Online Catalog : http://www.bmgmusicservicecanada.com
Add. Contact Info: Customer Service is open for special five day
express (credit card) orders until 10pm EST,
Mondays to Fridays.
A. Compiled by Rob McIntyre (ck580-freenet.carleton.ca) with
additional information from The Webslinger
(thetotalpackage@premiumproducts.com)
-- Standard Deal
"12 CDs for the price of 1".
-- Membership Agreement
In order to receive 12 cds for the price of 1, one must choose
seven cds at once, paying only for shipping and handling for these
selections, then purchase one cd at regular club prices ($15.98
and up, most selection being $19.98) plus shipping and handling
within one year, redeeming a certificate found in the first
shipment entitling a member to the remaining four cds at shipping
and handling. The total is taxed ; GST and where applicable PST.
-- Breakdown (without taxes)
Cost of first seven CDs (s&h) ---- $ 17.93 -
Cost of mandatory purchase at $18.98 per CD ---- 18.98 -
Cost of shipping and handling for mandatory CD ---- 2.99 -
Cost of shipping and handling for remaining 4 CDs ---- 10.46 -
------------------------------------------------------- -------- -
Total $ 50.36 -
Divided by number of CDs obtained d 12 -
------------------------------------------------------- -------- -
Per CD price $ 4.20 -
-- Additional Discounts
Plenty of discounts, some of which don't require members to
purchase a regular priced selection before taking advantage of
these discounts.
-- Additional Discounts : Bonus Bucks
(Program Expires March 1st, 2000)
A member is entitled to "Bonus Bucks" upon purchase of any selection
from BMG Music Service Canada. "Bonus Bucks" may be exchanged for
selections equal to the value of the accumulated "Bonus Bucks". For
example, if a member has accumulated 16 bonus bucks, he or she would
be entitled to a selection whose regular club price is that of 16
dollars,free (shipping & handling and applicable taxes not included)
"Bonus Bucks" are accumulated from all purchases, including free
selections and selections acquired at enrollment. A full priced
selection entitles a member to 3 "Bonus Bucks" while a discounted
selection entitles a member to 2, the member receiving one "Bonus
Buck" from free selections. "Bonus Bucks" for multi-unit selections
are calculated by multiplying the amount of units in the selections
in question by the amount of "Bonus Bucks" the member would have
been entitled to if he/she had purchased a selection of a singular
unit. For example a selection of 3 units purchased at full price
will entitle a member to 9 "Bonus Bucks", while this same selection
at a discounted price would only entitle a member to 6 "Bonus Bucks"
The maximum amount of "Bonus Bucks" a member can have in his/her
account is 100. A member may collect additional points after he/she
has redeemed all or a portion of the acquired "Bonus Bucks", these
"Bonus Bucks" expiring on March 1st, 2000 or upon cancelation of
membership. It is important that a member redeem as many of these
"Bonus Bucks" before the program's expiry.
-- Shipping and handling
$2.99 for first selection
$2.49 (per selection) for second to eight selection
$0.99 (per selection) for ninth and subsequent selections
$1.00 per additional cd in a multiple set (ex. $3.99 for double cd)
Additional $1 per extra unit (ex. $3.39 per double cd).
$2.99 is added per order for five day express (credit card) orders.
-- Returns
Bmg Music Service
Box 6050
Mississauga, Ontario
L5A 4J1
Returns are only accepted when they are sent to the above address,
were sent within ten days of receipt, and contain an explanation for
the return. Defective selections will be exchanged.
Unwanted parcels should not be opened. These can be sent back to the
company by writing "Return to Sender" on the parcel, preferably
inbetween the return address and your address, in bold, clear text.
-- Cancelation of Membership
A member may cancel his or her membership after completing their
agreement with BMG by requesting a cancelation in writing.
-- Positive Response Program
The BMG Music Service only accepts requests for this program after a
member has fulfilled the membership agreement. Written requests are
recommended.
-- Additional Information
Online Catalogs - An online catalog is now available for Canadians
at http://www.bmgmusicservicecanada.com
Rejoining - One membership per person, per year.
--
III.CDHQ (Canada)
P.O Box 4000 STN D
Scarborough, Ontario
M1R 5M9
Customer Service : (416) 293-6300
FAX : (416) 293-1760
Email : cdhq_customer_service@cdhqcanada.com
Online Catalog : http://www.cdhqcanada.com
Add. Contact Info: 24h Automated Order Line (416) 293-3472
A. Compiled by Rob McIntyre (ck580-freenet.carleton.ca)
-- Standard Deal
Currently "11 CDs For The Price Of 1" and on occasion "12 CDs For
The Price Of 1".
-- Membership Agreement
Similar to the BMG Music Service, this company offers a number of
selections free, requiring a member purchase one cd at regular CDHQ
club prices ($15.98 to 19.98) to redeem a certificate for the
remaining three free selections, this mandatory purchase fulfilling
the member's agreement with the company. Like BMG, a shipping and
handling charge is billed for each selection ($2.39).
-- Breakdown (without taxes)
("11 CDs for the price of 1" offer)
Cost of first seven CDs (s&h) ---- $ 16.73 -
Cost of mandatory purchase at $18.98 per CD ---- 18.98 -
Cost of shipping and handling for mandatory CD ---- 2.39 -
Cost of shipping and handling for remaining 3 CDs ---- 7.17 -
------------------------------------------------------- -------- -
Total $ 45.27 -
Divided by number of CDs obtained d 11 -
------------------------------------------------------- -------- -
Per CD price $ 4.12 -
-- Additional Discounts
Many discounts, the most prominent being half price sales with the
purchase of one cd at regular clubs prices (available immediately
with first purchase) and occasionally offers in which members can
obtain one or two free selections after the purchase of a regularly
priced selection (at times with further discounts on additional
purchases).
-- Shipping & Handling
(subject to change)
$2.39 per CD, $1 per cd added for multiple set (ex. $3.39 for
double CD).
-- Returns
Only unopened CDs sent within 30 days or receipt are accepted, the
return parcel containing an explanation for it's return. Defective
selections will be exchanged.
Unwanted parcels should not be opened. These can be sent back to the
company by writing "Return to Sender" on the parcel, preferably
inbetween the return address and your address, in bold, clear text.
-- Cancelation of Membership
A member may cancel his or her membership after completing their
agreement by requesting a cancelation in writing.
-- Positive Response Program
No news yet on if CDHQ has a positive response program, but if one
is available, they will likely only accept individuals who have
fulfilled their agreement.
-- Additional Information
It should be noted that some CDHQ selection numbers can be obtained
from Columbia House Canada's online catalog. The CDHQ CDs I have
received are manufactured by Columbia House Canada.
Rejoining - One membership per person.
--
IV. Misc. Information
A. Compiled by Rob McIntyre (ck580-freenet.carleton.ca)
-- "Member Get A Member"/"Get A Friend" offers
All three clubs have offers in which members can obtain additional
selections free (s&h not included) by introducing their friends to
these clubs. Offers vary from club to club, but most are for three
free cds, an exemption being placed on Ontario residents because
of Section 37(2) of the (Ontario) Consumer Protection Act, which
was created to protect consumers from pyramid schemes.
To counter the loss of potential membership created by this law,
all three clubs have introduced programs specific to the province
of Ontario, enabling members to collect one or two free cds via the
new member they've signed into the club, these offers requiring
members to collect the free selection(s) from the new member.
-- Payment tips
* Many of Canada's major banks accept payments for Columbia House
and CDHQ, mostly via ATM, telephone banking and/or web services.
The service fees for these banks vary but one can still save on
the postage and/or long distance calling costs associated with
payment by mail or by telephone.
The banks confirmed to accept payment for Columbia House are:
The Bank Of Montreal (via telephone banking and web services only),
The Bank Of Nova Scotia (Scotiabank), The Canadian Imperial Bank of
Commerce (CIBC), Canada Trust The Royal Bank and The Toronto
Dominion Bank.
The banks confirmed to accept payment for CDHQ are: The Bank Of
Montreal (via telephone banking and web services only), The Bank of
Nova Scotia (Scotiabank), Royal Bank and Toronto Dominion Bank.
Access to this payment method may require the enabling of telephone
banking on one's account. Please contact your local branch for
additional information.
* When paying by credit card, you should tell the customer service
representative that you wish or do not wish to have all of your
future purchases charged to your credit card. Automated shipments
sent by default because of a late or lost reply card may be billed
to your credit card resulting in interest on unsolicited purchases.
-- Additional tips
* If possible, members of the BMG and CDHQ clubs should wait to
take advantage of offers in which they obtain free selections with
the purchase of their mandatory regularly priced selection.
* I was just informed (by someone whose email I accidentally
deleted!) that one can obtain "Air Miles" with purchases at CDHQ;
1 air mile per $10 purchase. Columbia House may have a similar
offer in the future.
* * * *
This document may be freely redistributed in its entirety, or in part
if it includes an attribution containing the title, "CD Club FAQ",
the version number or version date, and the maintainers name (Brad
von Haden). No part of it may be sold for profit or incorporated in
a commercial document without the permission of the copyright holder.
Permission is expressly granted for complete electronic copies to be
made available as an archive or mirror service on the condition that
the copy be kept up to date.
This document is provided as is without any express or implied
warranties. While some effort has been taken to ensure the accuracy
of the information contained in this article, the maintainer assumes
no responsibility for errors or omissions, or for damages resulting
from use of the information contained herein.
* * * *
To contact the page maintainer, please email me at
bpvh@voyager.net