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Amazon.com Signs Music Distribution Deal

Trying to increase its share of pre-recorded music sales, Amazon.com Inc. Wednesday signed an agreement with OnRadio (formerly ElectricVillage) to sell music through OnRadio's nationwide network of radio station Web sites.

Under terms of the agreement, Amazon.com will have exclusive rights to sponsor the playlists on the radio stations' sites, and to sell music from those lists. Financial details of the agreement were not disclosed.

"Radio stations will now be able to capitalize on the demand they create on air, and their listeners will have a quick, easy way to buy the music they love," said Ricardo Ramirez, president and chief executive officer of OnRadio. "We're particularly pleased to welcome Amazon.com as an e-commerce ally because of the company's powerful brand and tradition of exceptional quality customer service."

The program is set to be rolled out to OnRadio affiliates over the next 30 days.

"Radio moves music; air play is demonstrating its influence upon CD sales not only over the counter but also on the Web," said Greg Hart, Amazon.com's music marketing manager "Working with OnRadio is logical for us because of the many stations and wide range of formats in its network."

Wednesday's agreement bolsters Amazon.com's presence in the music retail sector. It is a recent entry into the music sales arena, and faces competitors like CDnow, N2K and others. The industry has lots of room for growth since analysts project Internet music sales will rise from about $300 million this year to $2.5 billion in 2002.