INgrooves acquires Fontana Distribution

Inside a move signaling the ongoing change from physical to digital sales within the music biz, Bay Area-based digital distributor INgrooves has acquired Universal Music Group's indie distribution arm Fontana Distribution. The deal, which in fact had been broadly rumored inside the industry in recent days, weren't revealed. Bay Area-based INgrooves has handled digital distribution of Fontana's product since 2008, employing its proprietary ONE Digital software platform. UMG holds a minority equity stake in INgrooves. The brand new entity, named INgrooves Fontana, will move to a different facility in La. It will likely be headed by INgrooves prexy Dork Zierler and Fontana prexy Ron Spaulding, and can still employ Fontana's sales pressure. Combined staff amounts around 120. INgrooves Boss Robb McDaniels stated inside a statement, "Through this acquisition, we can now provide the independent music communitya fully integrated physical and digital distribution marketing solution in The United States." McDaniels added, "By mixing INgrooves and Fontana, we'll have the ability to extend this philosophy right into a comprehensive distribution operation that delivers our collective clientele having a bigger sales pressure, more marketing assets along with a one-stop global retail network that maximizes possibilities within this dynamic, challenging atmosphere." The combined INgrooves Fontana roster of distributed labels includes Nettwerk, Vagrant, Body fat Possum, Dangerbird, Six Levels, Vice president, Dualtone, ESL, Rap-A-Lot and Downtown. In November, rapper Mac Miller's Rostrum Records album "Blue Slide Park," that was handled collectively by INgrooves and Fontana, first showed at No. 1 around the U.S. chart. As the majors with excitement accepted distribution of third-party indie labels throughout the 1990's and '00s, the melding of Fontana, that was founded by UMG in 2004, using its digital distributor signifies ongoing adjustment in the market as online sales grow and also the brick-and-mortar retail base for Compact disc sales is constantly on the shrink. Another major label groups have progressively walked back from indie distribution recently. Warner Group folded its two indie marketers, Alternative Distribution Alliance and Ryko Distribution, into one entity largely employing WEA's sales pressure, while EMI Music's Caroline Distribution was absorbed through the firm's primary distribution arm. The new sony Music Entertainment is constantly on the operate an indie division, Red-colored Distribution. INgrooves' purchase of Fontana also trims a substantial resource from UMG's holdings. The business's $1.9 billion bid for EMI's label assets is presently being considered by U.S. and European government bodies, which is broadly thought that large divestitures could be needed when the deal will be consummated. Contact the range newsroom at news@variety.com