Content provider Digital Music plans a public offering

Digital Music Group Inc., which supplies recordings to various online music stores, is going public. The company, which has the rights to sell over 200,000 music recordings in digital format and works with online music stores such as Apple iTunes Music Store, RealNetworks, Napster, Wal-Mart Music, MSN Music and Yahoo! Music, filed its papers for an initial public offering on Sept. 29 with the Securities and Exchange Commission.

IPO terms have yet to be established, but the company is using I-Bankers Securities as its sole underwriter. Since it was founded in 2004, Digital Music has generated revenues of more than $300,000 and incurred cumulative losses of about $1.5 million, the company says in its S-1 filing. Today iTunes accounts for about 80% of all revenues.

With the proceeds, Digital Music will acquire digital rights to additional music recordings and add more working capital, the company says.

Digital Music says it currently has more than 17,000 music recordings available for sale through leading and selected specialty online music stores.