The Children's Group, Canadian-based producer of such popular children's audio and video series as Classical Kids and The Mozart Effect Music for Children, has signed a distribution agreement with Naxos of America for the U.S. market. Effective September 16, Naxos, a leading independent distributor of classical music also known for its labels' budget pricing, took over full U.S. distribution responsibilities (including orders, co-op requests and returns) of Children's Group titles from Atlantic Records/WEA which had distributed The Children's Group for the past five years. Naxos of America is located in Franklin, Tenn.

The new arrangement will be marked by an aggressive net pricing strategy for all the Children's Group's top series as well as the release of a DVD edition of Beethoven Lives Upstairs, the Emmy Award-winning Classical Kids film first released 10 years ago. In a statement from the company, Children's Group president Michelle Henderson commented, "We anticipate a seamless transition… catalogue inventory will be in-house at Naxos and ready to ship."