Sources: U.K.'s Peoplesound To Relaunch

Buongiorno Vitaminic to revive download brand.

British online music service is to be relaunched, has learned. The site has been operating on a limited basis in recent months.

The new Peoplesound, which is owned by Parma, Italy-based content distributor Buongiorno Vitaminic, is scheduled for a soft launch later this month, sources say. A full commercial service is expected to go live by the end of the year.

Sources say the launch will reposition Peoplesound as an advertising-funded community Web site for labels and other content providers. It will function as a platform for introducing new acts or releases and will enable unsigned acts to promote their recordings.

The service will be overseen by Buongiorno Vitaminic's London office, which is helmed by managing director Burton Katz. Milan-based Vitaminic acquired Peoplesound in 2001 in an all-stock deal worth about €34 million ($29 million).

Vitaminic launched in 1999 and became one of the first international online music sites, with a presence in 11 countries, including the United States. However, it developed financial problems after failing to persuade the major labels to license frontline repertoire. In 2003, it was acquired by Italian interactive mobile-phone service provider Buongiorno.

In other news, Buongiorno Vitaminic is understood to be planning to open a U.S. office later this year. Katz is overseeing the launch of the Miami-based affiliate.