Tuesday 14 February 2012, 11:10 | By

Sony DADC bails on physical distribution in US, but extends digital

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Sony Corp

Sony Corp’s CD manufacturing and distribution company Sony DADC has sold its American CD distribution business to Anderson Merchandisers. The deal will see Anderson take over physical distribution for three of the majors in the US – Universal, EMI and Sony – giving the buyer an important role in the declining but still important CD market Stateside. Anderson already looks after the supply of music product to big US retailers like Walmart and Best Buy.

Sony DADC will continue to manufacture CDs Stateside and to distribute DVDs and Blu-Ray discs, though the Anderson deal does mean two of its American distribution centres will be wound down. Interestingly, at the same time the Sony distribution company was cutting back its disc operations, it was expanding its role in digital distribution by announcing a new deal with Warner Music, also in the US. That deal will see the Sony company handle the logistics of digital distribution for the major, though Warner will also retain account managers to liaise directly with digital platforms on a day to day basis.

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