AOL, COLUMBIA HOUSE IN MULTI-MILLION MARKETING DEAL.
America Online See AOL. Inc has made a deal with Columbia House, a direct
marketer of music, videos and DVDs. The deal covers online and offline
ads and promotions, including product bundling Product bundling is a marketing strategy that involves offering several products for sale as one combined product. This strategy is very common in the software business (for example: bundle a word processor, a spreadsheet, and a database into a single office suite), and in the fast , direct mail initiatives
and co-marketing and ad campaigns. Columbia House, which has 13 million
Club members, plans to hawk its wares though AOL's Shopping
Channel Shopping channels are television specialty channels that present shopping related content, particularly for home shopping enthusiasts.
Home shopping pioneers: - Bob Circosta
- Barry Diller
- Bud Paxson
- Joseph Segel
and on AOL.com, CompuServe, Digital City and Entertainment
Asylum. In return, the company will distribute AOL (A division of Time Warner, Inc., New York, NY, www.aol.com) The world's largest online information service with access to the Internet, e-mail, chat rooms and a variety of databases and services. software to its own
members and has guaranteed a minimum number of new memberships for AOL.
The companies did not disclose exactly what the multi-year agreement is
worth, saying only that it amounts to many millions of dollars. Music
and videos lend themselves to e-commerce almost as readily as books.
Competition for the market has exploded, especially since Amazon.com
launched a CD store in June 1998 and CDNow merged with N2K in October
(CI No 3,524).
COPYRIGHT 1999 Datamonitor
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1999 Gale, Cengage Learning. All rights reserved.
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