New York-based RED Distribution says 29 labels have signed on for the company's digital distribution services.

New York-based RED Distribution says 29 labels have signed on for the company's digital distribution services. The independent distribution arm of Sony Music says more than 250,000 tracks and 12,000 complete albums have been downloaded since it opened its digital division, RED-D, earlier this year.

RED says a number of its top digital sellers have also seen an increase at brick-and-mortar retail. Ruthless Records act Spymob has sold 96,000 downloads of the single "German Test Drive" via the service, leading to a 300% increase in the act's overall digital and non-digital sales.

Other notable sellers included a best-of set from Cirque du Soleil Music, which sold more than 100 copies during a two-week exclusive promotion on Apple's iTunes, and the RED-distributed New West label, which has sold more than 20,000 tracks since joining the service in May. Other labels utilizing RED-D include Basement Records, Dualtone, Equal Vision and Victory Records.

In addition to iTunes, RED-D provides music to Web services from Napster, Rhapsody, BuyMusic, MusicMatch, Connect, MusicNet, Liquid Audio, Wal-Mart, Streamwaves, MSN Music, Starbucks and Punk Download.

RED offers high-speed encoding and sales and accounting reporting via its B2B Web site. The company plans to offer ringtones and on-demand video in the coming year.