During the early 1930s, phonographs were introduced in Greece and were first seen in the living rooms of urban residents. However, their presence was not widespread. The production of records was a costly and complicated process which involved finding musicians, composers, and librettists to license the rights for recording on wax. The plates with phonographic imprints were then sent to European countries to create a copper matrix, a nickel-plated one, and a final matrix called the "child" before the phonographic disc could finally be produced. The sample of the finished product was then sent to Greece for approval, which increased the production costs and time to market.
In 1931, the announcement by the American Columbia Company that they would set up a headquarters in Greece caused a stir in Greek society. The construction of the Columbia factory in Rizoupoli in 1930 changed the recording scene in Greece, as records were now produced entirely in Athens, reducing expenses and allowing prices to adjust to the Greek market. The cost of a disc dropped from 120 to 80 drachmas, and the factory had the capacity to produce 300,000 discs per month, which was a substantial output at the time.
The factory was built on an area of 14 acres and was one of the most modern in Europe. It cost the American record giant £60,000 and was equipped with the latest achievements in industrial technology. The know-how gained from building previous factories was applied to Rizoupoli as it was Columbia's 27th factory worldwide.
The factory in Rizoupoli not only produced records for Columbia but also for companies that worked with the company, such as Odeon, Pate, and Parlophone. The businessman brothers Lambropoulos were appointed as general representatives of the company, and five years after the construction of the factory, the first recording studio was opened. Two new studios were built in 1963 to better serve the needs of Greek record production.
For six consecutive decades, Rizoupoli was the heart of the domestic music scene, except during the years of the Occupation. In 1977, Columbia ranked 75th among Greece's export businesses with exports of $5,000,000. In 1978 the factory employed 350 people and held 123rd place among industrial enterprises.
However, the gradual decline began in the mid-80s with the departure of the Lambropoulos brothers. The factory was finally closed in 1991 after one last printing of "Let's Go North" by Nikos Nomikos. The record was given to the 117 workers along with their compensation.
Today, the remains of the historical factory can be found on the Rizoupoli plot. Until 2006, the derelict facilities remained abandoned and unused, subject to the ravages of time. Despite the protests and appeals of the residents, the plans to build a museum of Greek music were never realized, and looters took advantage of the unguarded area, stealing equipment and machinery. In May 2006, all of the factory's buildings, except for one that was listed as a historic building, were demolished.