Stock Tickers: DMGI, AAPL
Digital Music Group (DMGI) is trading up 35% at $5.15 in after-hours trading. Its 52-week range is $3.75 to $10.42; and only trades 16,700 shares per day (excepttomorrow). DMGI has a market cap of $34 million prior to this announcement.
Digital Music Group, Inc. (DMGI) entered into an agreement with Apple (AAPL) On January 19, 2007, where DMGI appointed Apple as a reseller of audio-visual files owned and/or controlled by DMGI: television programs, feature length movies, shorts, and specialty content, within the relevant territory, and granted Apple certain rights to market and promote DMGI’s Video Content. Apple agreed to pay DMGI fixed wholesale prices for each video download. Under the Agreement, DMGI is generally responsible for all royalties and third party payments due with respect to the exploitation of DMGI’s Video Content. Apple will provide monthly sales reports to DMGI and make payment based on such reports. The Agreement has a term of 3-years from the launch of DMGI’s Video Content on iTunes electronic store.
Jon C. Ogg
January 23, 2007