Audio Book Club Buys D'day Club
Jim Milliot -- Publishers Weekly, 4/5/1999
Less than three months after acquiring Columbia House's audio book club division (News, Jan. 11), Audio Book Club Inc. has further strengthened its hold on the spoken-word audio direct-mail business with an agreement to acquire Audiobooks Direct from Doubleday Direct Inc. Terms of the transaction were not disclosed, although ABC said the purchase would add more than 450,000 names to its database, bringing its membership base to more than two million.The two companies have also worked out an agreement under which they will create a co-branded Web site that will cross promote ABC's and Doubleday's products. The agreement also gives ABC the exclusive right to promote audiobooks through Doubleday Direct's consumer book clubs and Doubleday Select's professional book clubs.
The purchase of Audiobooks Direct continues ABC's policy of aggressively seeking new members. The company, which had approximately 300,000 members at the end of 1997, spent $7.5 million in 1998 toward new member recruitment and name branding via the Internet and direct mail. Its alliances with Internet companies cost the company $4.6 million alone last year.
The membership drive was one factor in pushing ABC's net loss to $7 million in 1998, compared to $4.9 million in 1997. Sales rose 47% to $14.9 million.The company also reported that it paid $30.7 million in cash plus 325,000 shares to acquire the Columbia House audio unit.
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