Portland, Ore. - CD Baby, an online retailer of CDs for over 242,000 independent artists, has been acquired by CD and DVD manufacturer Disc Makers for an undisclosed sum. Founded in 1997, Portland, Ore.-based CD Baby charges a one-time setup fee of $35 per CD, allows artists to set their own prices, and retains $4 of every sale while paying artists on a weekly basis.
The company has to date sold over 4.5 million CDs and paid out over $83 million directly to artists.
CD Baby added digital distribution services in 2004, offering to service its artists’ music to retailers like iTunes, eMusic and Rhapsody, and more recently launch a similar service for filmmakers (FilmBaby) and a Web hosting service for musicians (HostBaby).
Artists who have sold albums on CD Baby before signing with a major label include Regina Spektor, Jack Johnson and Gary Jules.
New Jersey-based Audio & Video labs, the parent company of Disc Makers, intends to retain existing CD Baby staff and facilities.
The companies had already been working together for the past seven years.
"Disc Makers was my first choice to take the company to new heights," said CD Baby founder Derek Sivers, who will continue as a consultant to the company.
"Their operational expertise is just what little CD Baby needed to grow up."