RED to distribute releases.

Manager/label executive Michael Rosenblatt and producers Tony Berg and Eric Valentine have formed a full-service music company, 3 Entertainment. The L.A.-based business will encompass a label, publishing, management and merchandising arms.

The label's releases will be distributed by Sony's RED Distribution; albums deemed ready for further exposure will be upstreamed to Columbia. Acts will record with Berg (Squeeze, X, Aimee Mann) or Valentine (Queens of the Stone Age, Good Charlotte) in their studios at reduced rates.

"We are three people that are all about the artistry," Rosenblatt, a former Sire A&R executive who signed Madonna, tells Billboard.biz. "We want to build careers and grow artists for the long term."

"This is a genuine alternative for young recording artists," adds Berg, a veteran of Geffen, Virgin and ArtistDirect. "We're creating an environment where no one will feel like a clock is ticking. Instead, we're fostering the opportunity to develop."

3's first signing is Los Angeles-based artist Mr. Sandwiches.