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| UPDATED: 2007-07-11 |
 Digital Music Group Merging With The Orchard 
By: Bruce Houghton 2007-07-11 The Digital Music Group is merging with rival Orchard. The combined companies will trade on the th NASDAQ... ... as DMG but will be controlled by and do business as The Orchard.  "This company has been uniquely designed entirely around the exploitation of digital music rights," said Greg Scholl, head of the Orchard, who will also lead the combined company. "We'll have more songs for sale so we'll be a bigger partner for the retailers we supply and we'll have more leverage in the market."
The Orchard was an early player in the indie digital distribution space demanding higher fees (often up to 30%) than other distributors, but claiming better service. Today's move allows the company (owned by Dimensional Associates who also control eMusic) to tap the public equity markets without a costly and somewhat risky IPO.  Digital Music Group was a late entry into the same space with both audio and video offerings. DMG went public in February of 2006 at $8.50 a share, but the stock has fallen sharply since closing yesterday at $3.99 a share.
More consolidation in the digital distribution space seems inevitable caused by tightening margins and increasingly open access to sales channels. For an exclusive Hypebot interview with Orchard CEO Greg Scholl done last year read parts 1,2,3. The Orchard's press release: Continue reading "Digital Music Group To Merge With The Orchard" Comments View All Articles by Bruce Houghton About the Author: Bruce Houghton is a 25 year music industry veteran who owns booking agency Skyline Music and the tour marketing company Skyline Innovations. http://www.hypebot.com |
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