Sony (NYSE: SNE) Music Entertainment has taken a stake in indie digital music distribution service IODA. Financial terms were not disclosed, but Sony did say that it would integrate parts of IODA’s online music platform with RED, the independent music distribution company it acquired back in 1994.
IODA boasts a roster of over two million tracks, as well as about 2,000 film and video clips; retail partners include iTunes, Amazon and most recently MySpace Music. The deal could pave the way for indie MP3 sales on Vevo when it launches later this year—since Sony has joined Universal and Google (NSDQ: GOOG) as a partner in the online music video site. Release.
This is similar to another deal that happened last year, when Universal Music invested in InGrooves, another digital distribution firm.
By Tameka Kee