Columbia Graphophone Company
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Columbia Graphophone Company

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Columbia Graphophone Company

Columbia Graphophone Co. Ltd. was one of the earliest gramophone companies in the United Kingdom.

Founded in 1917 as an offshoot of the American Columbia Phonograph Company, it became an independent British-owned company in 1922 in a management buy-out after the parent company went into receivership.

In 1925, it acquired a controlling interest in its American parent company to take advantage of a new electrical recording process. The British firm also controlled the US operations from 1925 until 1931. That year Columbia Graphophone in the UK merged with the Gramophone Company (which sold records under their His Master's Voice label) to form EMI. At the same time, Columbia divested itself of its American branch, which was eventually absorbed by Columbia Broadcasting System (CBS) in 1938.

The company's record label Columbia became a successful British brand in the 1950s and 1960s, and was eventually replaced by the newly created EMI Records, as part of a label consolidation. This in turn was absorbed by the Parlophone Records unit of Warner Music Group in 2013.

The Columbia Phonograph Company was originally founded in the US by Edward D. Easton in 1887, initially as a distributor with a local monopoly on sales and service of Edison phonographs and phonograph cylinders in Washington, D.C., Maryland, and Delaware. It also made its own compatible cylinder recordings. In 1901, Columbia began selling disc records (invented and patented by Emile Berliner of the Victor Talking Machine Company) and phonographs. For a decade, Columbia competed with both the Edison Phonograph Company cylinders and the Victor discs. Edison discs and Columbia's acoustic records both had a nominal playback speed of 80 rpm.

From about 1898 until 1922 the US parent company managed a UK subsidiary, the Columbia Graphophone Manufacturing Company. Its headquarters and studios were established in Victorian warehouses at 102-108 Clerkenwell Road shortly before the First World War, and the buildings were a key location in the development of the British recording industry until the 1930s. In 1917, the Columbia Graphophone Company was registered as a British company, with the shares being held by the American firm. A general market downturn in 1921 affected the whole entertainment industry. Profits turned to losses, and in late 1922 the creditors of the US parent company filed a petition for involuntary bankruptcy: Columbia went into receivership. Seeking to raise cash, Columbia sold the British branch in December 1922 to a group of investors led by Columbia's General Manager in Britain, the American-born Louis Sterling (1879–1958).

Columbia in the US emerged from receivership in February 1924 as the Columbia Phonograph Company Inc., but was immediately faced with another crisis, as booming radio sales reduced the firm's profitability. The same year, Bell Labs-Western Electric had developed a new electrical recording system to replace the old acoustic recording methods, and was offering exclusive rights to Victor although its Chairman's illness had led to delays. Louis Sterling as Managing Director had turned around the fortunes of UK Columbia, and persuaded Western Electric that granting a monopoly would be a grave mistake. Columbia had been making test electrical recordings since at least August 1924 with the Western Electrical system. Although the Columbia Phonograph Company of New York could not afford the royalty payments, Sterling was in a position to buy out the US operation and, as an American company, to purchase the licence for the new Western Electric patents. Satisfied with the progress of the test recordings, in March 1925, Louis Sterling (backed by J.P. Morgan & Co.), acquired a controlling interest in the parent company, Columbia US, for $2.5 million (about £500,000) in order to take advantage of Western Electric's patents. The firm continued in business as the Columbia Graphophone Company in many countries as a British company. Sterling, originally from New York, became chairman of the US operation.

On February 25, 1925, Columbia began recording with the licensed Western Electric recording process and was using it on a regular basis by April. The royalty payments were considerable, and in 1928 Columbia hired the English electronics engineer Alan Blumlein to work on an alternative. By late 1930, he had developed a recording system including a moving-coil microphone and a cutting head with linear characteristics which circumvented Western Electric's patents. Columbia continued to use acoustic recording methods for the cheaper labels, and to release discs made with old acoustic masters on the Harmony and Velvet Tone labels until around 1929.

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