That's similar to it, but I remember it being different where an actual entity lived within the violin. For a price the creature would give those who played the violin the talent to make it "sing" as it were. However, the red violin is probably the movie while the anime I remember embellished the tale a bit adding the demon part to it.
Definitely agree with you there Lemunde, the story of selling one's soul to an evil entity "Devil, Lucifer, Satan, etc..." is quite common. It's always about a person who wants something beyond their reach and is willing to sacrifice everything to get it.