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Universal Allies With Digital Music Startup To Find New Talent (And Get Into Guitar Center)

Universal Music is linking up with another digital music distributor, albeit this time a less traditional one. The company said it had signed a strategic alliance with TuneCore, a startup that in exchange for a one-time fee will take anyone’s song and distribute it to major online digital music stores. Universal Music will offer its “artist-discovery, marketing, and upstreaming opportunities” to TuneCore customers—and in the process get access to new talent. It also gets an added bonus: Guitar Center is a TuneCore investor and Universal Music will now be able to distribute its records at all 200 Guitar Center stores. The company invested last year in digital music distribution company InGrooves, although that deal involved Universal Music using InGrooves for “a variety of digital distribution, promotional, and royalty management” services, according to Digital Music News.

Universal Music has been aggressive with its digital moves—and they’re also very broad. The company has partnered with YouTube to launch music video site Vevo, which will launch later this year. And it’s also an investor in recently renamed Buzz Media, which operates the Buzznet music social network, along with other music and entertainment sites. Release.

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Jul 9, 2009 6:50 PM ET

Woman listening to music Photo: RossinaBossioB

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Posted In: Entertainment, Music, Companies, Vivendi, Universal Music Group

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