Universal Music Group, INgrooves Strike Strategic Alliance

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Universal Music Group is now striking a strategic relationship with San Francisco-based digital distributor and platform INgrooves, according to information confirmed this morning.

Sources close to the deal shared information on Monday, and the parties have now issued a joint statement confirming the relationship.  The deal involves several components, including a significant investment by UMG, though sources would not disclose specific valuations to Digital Music News.  The multi-year alliance is being structured through Universal Music Group Distribution (UMGD).

Perhaps more significantly, Universal Music Group will now tap INgrooves to handle a variety of digital distribution, promotional, and royalty management aspects, according to multiple sources close to the deal.  The action revolves around the INgrooves’ distribution platform known as ONE Digital, which encompasses a number of digital solutions, including mobile-based aspects.  Content is now being rolled onto the platform, though delivery of the broader catalog is expected to take a considerable amount of time.

The deal follows reports of a significant investment by Universal Music Group in Buzznet, possibly structured through the Interscope label.