Zomba Renews Deal With Bertelsmann

After months of tense negotiations, Bertelsmann has persuaded Zomba Music Group, home to ‘N Sync and Britney Spears, to renew its distribution deal for another year, sources said. The German conglomerate, which has long relied on Zomba recordings to prop up its sales market share, will continue to distribute Zomba recordings in Canada and the U.S. through fall 2002. Representatives of BMG and Zomba declined to comment. The move follows industry speculation that Zomba would leave Bertelsmann to cut a similar deal with British music giant EMI Group.