Universal Music Restructures Tech Unit

Seagram Co.’s Universal Music Group has restructured its e-commerce and advanced technologies division, after the disappointing performance of a system for delivering music to be downloaded over the Internet, and in which the company had invested millions of dollars.

Universal has recruited Bruce Hack, who streamlined Seagram’s movie and music sectors, to help shape up its e-commerce group. On Monday Universal said that group will be divided into two: Universal ELabs and Global E, and be overseen by Zach Horowitz and Hack, respectively.

The move comes less than a month after Universal scrapped a test of its costly Project Nigel system, which is being developed in conjunction with AT&T; Corp., BMG Entertainment and Matsushita Electric Industrial Co. After a year of development, Universal decided to delay the test until it can fix the glitches plaguing the system.