The Warner Music Group's digital delivery of music to digital service providers will now be handled by Sony DADC, sources tell Billboard.biz.
As part of the agreement, the WEA digital asset management team led by senior VP of media operations Pat Kraus has moved from WMG to DADC, according to the sources. While the WMG is turning over its digital backroom to DADC, the WEA digital account managers will continue to service all digital accounts.
So even as DADC gets out of CD fulfillment with its deal to Anderson Merchandisers, this move buttresses DADC's position in the digital music world.
WMG's move to assign digital storage and delivery to DADC has been misinterpreted by some to mean that WMG would sign a distribution deal with one of the other majors.