Two Top Execs Exit Digital Music Group

Publicly traded Digital Music Group, a digital distributor of music and video announced today that COO Anders Brown and VP of Development Richard Rees have resigned their respective positions.  Brown will pursue opportunities closer to his home in Seattle, but will remain active in his position
through March.  Rees resigned effective December 31st to join an Austin-based investment firm.  CEO Mitchell Koulouris will now lead content acquisition and others within DMGI will assume Rees’ responsibilities.

While these two high profile resignations may be normal attrition; it is also possible that the realities of slim margins and slower than expected growth are starting to take their toll within the digital
distribution sector. As of mid-day Thursday the stock was trading on NASDAQ at $4.51 off a 52 week high of $10.42.

The company of course tried to put a positive spin on the resignation.  In a press release Koulouris stated, "Leadership changes like this are not uncommon for fast growing companies with entrepreneurial roots.  We will make an announcement concerning our revised management structure at an appropriate time during the first quarter of 2007."