Digital Music inks deal with Apple’s iTunesJanuary 26, 2007
Shares of Digital Music Group Inc. rose about 7 percent in extremely heavy trading Wednesday, after the company filed documents that outlined a three-year pact with Apple Inc.’s iTunes.
The Sacramento-based company will sell its video content on Apple’s widely popular iTunes store, according to a document filed late Tuesday with the Securities and Exchange Commission. Cupertino-based Apple will pay fixed wholesale prices for each downloaded television program or movie.
Digital Music’s collection includes historic news broadcasts and classic TV episodes, including “Hopalong Cassidy” and “My Favorite Martian.”
Digital Music acquires the rights and digitizes music and videos and makes them available to online music stores, including iTunes, Google Video, RealNetworks, Napster, Wal-Mart Music and Yahoo Music!