• To help win European Union approval for its purchase of BMG Music Publishing, Universal Music has offered to sell of the Zomba Music Group catalog, home of hits by Backstreet Boys and Britney Spears. (Reuters)

• Snocap inked a deal to sell Sub Pop, Dangerbird and New Line labels through Snocap MyStores. The deal will allow artists on those labels to offer downloads directly through their MySpace pages and other websites. Sub Pop is home to current Top 40 artist The Shins as well as The Postal Service. (Press release)

• Indie execs speak on SXSW's first day. Said New West founder Cameron Strang: "The digital thing hurts our business. It doesn't hurt the music business, but it hurts the record business." Matador's Gerard Cosloy said he's trying to find ways to offer more value with each CD purchase. (Billboard.biz)

•Digital distributor IODA has launched Promonet Pro, a suite of digital marketing tools. (Press release)