Universal Music Group Distribution, the sales and marketing division of Universal Music Group has entered into a strategic alliance with digital distributor INgrooves. As part of this venture, Universal Music Group has made a strategic investment in INgrooves. The move comes just days after Universal's investment in music based social networker Buzznet.
The lure seems to have been INgrooves' proprietary software platform ONE Digital, and both the UMGD and its indie arm Fontana will utilize INgrooves' menu of services which include digital retail sales and marketing, sales reporting, film and video distribution, and mobile.
INgrooves has had some success recently as the digital distributor of Dolly Parton's 'Backwoods Barbie' which debuted as the #1 country album on iTunes as well as artists like Tracy Lawrence, Thievery Corporation, Los Tigres del Norte and more. But with downward price pressure on all digital distributors from labels increasingly questioning their value in a tight marketplace, you can expect more consolidation in the sector.
