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The two companies already have a close relationship, with Universal's distribution arm distributing music for DreamWorks Records.
Cheaper equipment for producing and distributing music is allowing new entrants.
Distributing music or any other file is much cheaper via BitTorrent.
"Music fans shouldn't have to worry that sites distributing music online are illegal and unethical.
Graham pleaded guilty at an earlier hearing to illegally distributing music.
The deal turns AOL into a potentially powerful ally for spreading Microsoft software for distributing music and video.
Distributing music online will cut out both the costs and the inconvenience of distributing it on disc.
"There are new ways of distributing music that don't require the record companies to be a part of it".
Before MP3, the music business regarded the whole notion of distributing music over the Internet as basically a distraction.
RioPort.com will begin distributing music downloads to Best Buy's Web site later this year, adding to the site's music selection.
Mr. Monti later dropped that concern and focused primarily on the issue of distributing music over the Internet.
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