Look for Universal Music & Video Distribution to start a U.S. independent distribution company in the next few months. Sources say the company is still on the drawing board, but the plan is to see

Look for Universal Music & Video Distribution to start a U.S. independent distribution company in the next few months.

Sources say the company is still on the drawing board, but the plan is to seek out independent labels for distribution. Also, the new company is expected to serve as a farm club so that Universal Music Group labels can develop baby bands more cost-effectively. The indie distributor will also serve as an outlet for UMG's international operations to release music in the States.

When the indie company launches, UMG will become the fourth major to have two U.S. distribution set-ups. Sony bought RED in the '90s, EMI gained Caroline when it acquired Virgin, and Warner Music Group built Alternative Distribution Alliance.

UMG is choosing to build a company instead of buying an indie distributor because its management believes that the former appoach will give it better control and understanding of the operation.

A UMG spokesman was unavailable for comment.