Tower Records is set to launch a new podcast initiative under the name "TowerPod." It is set to be unveiled at SXSW in Austin, TX later this month, with an official launch in the summer. TowerPod will let individuals create podcasts using a library of 6,000 songs for free. The music will come from independent artists and labels, with revenue from embedded ads in the podcasts. Ad dollars will be split between Tower, the labels, the artists and the podcast creators.

The Web site, TowerPod.com, is up but currently empty. Tower already has its own, weekly podcast, the Tower Connection, which features new music and offers discounts on albums bought through Tower's site.

As previously reported, Tower is also once again looking for a new buyer, after unsuccessfully attempting to sell the chain in 2003 and 2004.