GETMUSIC GETS GREEN LIGHT FROM BMG, UMG

BMG Entertainment is committed to developing and financing GetMusic.com, its online retail joint venture with Universal Music Group, even though BMG's parent, Bertelsmann, acquired struggling online retailer CDNow last week for $117 million (hitsdailydouble.com, 7/20), Webnoize reports.

The acquisition will stabilize CDNow financially, which was in serious trouble and headed for closure.

But good news for CDNow could mean bad news for GetMusic.com. Questioners question whether BMG really needs GetMusic now that it controls CDNow.

Andrew Nibley, President and CEO of GetMusic, said the joint venture has strong financial and content support from both parents. "I think they are 100% behind us," he said. "We have a commitment of cash that means we can't run out of money for [two years]."

Initially launched as an online retail outlet, since last fall GetMusic has quietly transformed itself into a music news site offering editorial content and streaming videos. BMG Entertainment and Universal have pledged support for the Web site, hoping to develop it as a traffic generator for CDNow.

"GetMusic is a very important strategic marketing partner for BMG," said kevin conroy',390,400);">kevin conroy',390,400);">Kevin Conroy, president of new technology at BMG. "CDNow's focus has been on retailing, not programming, so there is a significant opportunity for them to work together."