Digital Music Group, a seller of digital musical recordings to online stores, is planning to go public in an IPO of up to $36 million of common stock.
The Sacramento, CA company–currently wholly owned by Musicworks International and Rio Bravo Entertainment–holds rights to more than 200,000 digital music recordings, with half acquired in this month. More than 17,000 are available for sale through online music stores…The company also stated that more than 80 percent of revenue since its inception was generated through the online music store iTunes.
For the six months ended June 30, the company posted a net loss of $866,172 on a total revenue of $223,672. CEO Mitchell Koulouris is a veteran of Tower Records..his bio is here.
From the company’s S-1 document filed with SEC: “Our strategy is to rapidly acquire by purchase or license the digital rights to as many music and other sound recordings as possible. Our focus is on acquiring rights to back catalogue, out-of-print recordings, past hits and independent label recordings, including those that are not currently available for sale in traditional music retailers. Other recordings we may acquire include music and audio from live performances not previously commercially available, radio and television productions, and other sources that we identify.”