AOL and Columbia House Enter Marketing Pact

America Online Inc., Dulles, VA, and Columbia House Music Co., New York, have reached an agreement for online and off-line advertising and promotions, including product bundling, direct mail initiatives and co-marketing and advertising campaigns. Financial terms were not disclosed.

Under the multi-year agreement, Columbia House, which has more than 13 million members, will promote its music, video and DVD clubs in AOL’s Shopping Channel, as well as on AOL.com, CompuServe, Digital City and Entertainment Asylum.

Columbia House will distribute AOL software in its product-fulfillment mailings, and has guarenteed AOL a minimum number of new memberships. Details were not disclosed.

AOL members who click on the various Columbia House icons and ads will be directed to a customized, co-branded home page designed for the AOL audience with special offers created for AOL members.