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# The Orchard + DMG.  Can Two Losers Make A Winner?
- URL: https://www.hypebot.com/the-orchard-dmg/
- Published: 2007-09-18T05:12:58.000Z
- Updated: 2007-09-18T05:12:58.000Z
- Description: An SEC filing related to the merger of The Orchard with Digital Music Group reveals two digital music distributors loosing money. (SEC) In 2006 The Orchard, which as a private. Continue reading [https://www.hypebot.com/hypebot/2007/09/the-orchard-dmg.html]
- Author: Bruce Houghton
- Tags: Vinyl, Cassettes & Retail, #wp, #wp-post, #Import 2026-01-21 11:06

An SEC filing related to the merger of The Orchard with Digital Music Group reveals two digital music distributors loosing money. ([SEC](http://sec.gov/Archives/edgar/data/1339729/000119312507201553/dprem14a.htm?ref=hypebot.com)) In 2006 The Orchard, which as a private company did not have reveal financial details, had a net loss of  
$5.97 million on revenue of

[![Orchard](https://hypebot.typepad.com/hypebot/images/2007/09/18/orchard.gif "Orchard")](http://hypebot.typepad.com/.shared/image.html?/photos/uncategorized/2007/09/18/orchard.gif&ref=hypebot.com)

$14.9 million for an accumulated loss of $16.5 million.

**COMMENTARY:**

Can two losers combine to make a winner or is this just an investment shell game?

[![Digitalmusicgroup_2](https://hypebot.typepad.com/hypebot/images/2007/09/18/digitalmusicgroup_2.jpg "Digitalmusicgroup_2")](http://hypebot.typepad.com/.shared/image.html?/photos/uncategorized/2007/09/18/digitalmusicgroup%5F2.jpg&ref=hypebot.com)

DMG does not have a very impressive catalog for a publicly traded company and often seemed to overpay to get it. Much of The Orchard’s business model is based on higher than industry standard distribution fees at a time when competitors are slashing commissions.

How can "combined cost savings" cure those ills?