Because online music retailers like CDNow
have likely taken a bite out of record-club sales, last week Internet company America Online
and direct music marketer Columbia House
announced a marketing agreement for both online and offline advertising and promotions, including product bundling, direct-mail initiatives, and co-marketing and advertising campaigns. Under the multi-year agreement, Columbia House, with more than 13 million members, will promote its music, video, and DVD clubs on AOL's Shopping Channel, as well as on AOL.com, CompuServe, Digital City, and Entertainment Asylum.