Handleman Co. (NYSE: HDL) rose 1 1/4 to 11 1/16 after the Troy, Michigan-based music company unveiled a business-to-business (B2B) Internet-based product called the Global Entertainment Utility.
The new operation will supply digital distribution of music and provide on-demand CD manufacturing for online and traditional retailers. The service will begin this summer, initially through in-store kiosks. It will later be expanded to include other delivery channels, including the Internet.
Handleman has worldwide licensing rights for on-demand manufacturing of more than 100,000 music selections, and said it is in talks with “the major music companies” to gain licensing rights of their music content for the new utility.