The investment is "a watershed for Creative to move into the content area," said Sim Wong Hoo, Creative CEO, who declined to reveal the investment figure.
He added that the stake in Soundbuzz.com will add "significant synergy" to Creative's personal digital entertainment (PDE) strategy.
Creative has invested in numerous Internet start-ups including artificial intelligence company MindMaker, voice conferencing companies AudioTalk and MediaRing.com, and broadband company Centillium Technology.
Creative launched a US$100 million investment fund early last year to help transform the company from a traditional manufacturer of graphics cards and speakers, to an Internet dotcom investor.
Part of the investment from Creative will be used for expanding Soundbuzz.com's operations in Asia, Soundbuzz.com said.
"Creative's range of PDEs like its family of NOMAD digital audio players, will certainly complement Soundbuzz.com's current and future music entertainment offerings," said Soundbuzz.com head and co-founder Sudhanshu Sarronwala.
Soundbuzz.com already has content, advertising and marketing partnerships in Singapore, Malaysia, the Philippines, Indonesia, Taiwan, Hong Kong Thailand and India.
Music distribution services will be launched in Singapore, Malaysia, the Philippines and Indonesia on April 30, said Soundbuzz co-founder and director Shabnam Melwani. Its Web site will allow users to sample, buy and download (legally) distributed digital music.
Sites for the Taiwan and India markets will be launched by May and June respectively, Melwani added.
According to a Goldman Sachs survey conducted in 1999, worldwide online music sales is expected to increase to US$3.3 billion by 2004 from US$29 million last year.
In January, Soundbuzz.com secured US$1.6 million in its first round of financing from several investors including the National Science and Technology Board, a US-based venture capitalist and SingTel chairman Koh Boon Hwee.
In February, Soundbuzz partnered regional Internet player Lycos Asia--a US$50 million joint venture between Lycos Inc and Singapore Telecommunications--to provide the Lycos Asia portal with downloadable digital music.
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