Alliance to Acquire Digital On-Demand

Entertainment content distributor Alliance Entertainment Corp. said it agreed to acquire Carlsbad, Calif.-based Digital On-Demand. Terms were not disclosed. Digital On-Demand operates a proprietary broadband network, RedDotNet, that is set to be installed in Wherehouse Music, Virgin Entertainment and Kmart and Target stores, among others, this fall. Machines hooked into this network will allow consumers to copy music, movies and games onto CD-ROMs in the stores. Customers can also download digital content from the machine into any MP3 device. The deal is one of a series of Internet investments made recently by grocery store magnate Ronald W. Burkle’s firm Yucaipa Cos. Yucaipa is the controlling shareholder in Alliance. The company also will make a separate $70-million investment in Alliance.