FORM 3

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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(Print or Type Responses)

1. Name and Address of Reporting Person *   Schneider Stanley Harvey 2. Date of Event Requiring Statement (Month/Day/Year) 11/26/2007 3. Issuer Name and Ticker or Trading Symbol Digital Music Group, Inc. [ORCD] (Last) (First) (Middle) C/O THE ORCHARD, INC., 100 PARK AVENUE, 17TH FLOOR 4. Relationship of Reporting Person(s) to Issuer (Check all applicable) _____ Director _____ 10% Owner __X__ Officer (give title below) _____ Other (specify below) EVP & General Counsel 5. If Amendment, Date Original Filed(Month/Day/Year) (Street) NEW YORK, NY 10017 6. Individual or Joint/Group Filing(Check Applicable Line) _X_ Form filed by One Reporting Person ___ Form filed by More than One Reporting Person (City) (State) (Zip) Table I - Non-Derivative Securities Beneficially Owned

1.Title of Security (Instr. 4) 2. Amount of Securities Beneficially Owned (Instr. 4) 3. Ownership Form: Direct (D) or Indirect (I) (Instr. 5) 4. Nature of Indirect Beneficial Ownership (Instr. 5)

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.			SEC 1473 (7-02)
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Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security (Instr. 4)	2. Date Exercisable and Expiration Date (Month/Day/Year)		3. Title and Amount of Securities Underlying Derivative Security (Instr. 4)		4. Conversion or Exercise Price of Derivative Security	5. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 5)	6. Nature of Indirect Beneficial Ownership (Instr. 5)
	Date Exercisable	Expiration Date	Title	Amount or Number of Shares
Stock Option (right to buy)	11/13/2007(1)	11/13/2014	Common Stock	3,333 (2)	$ 7.44 (2)	D	Â
Restricted Stock Award	11/13/2007(1)	  (1)	Common Stock	3,333 (2)	$ 0	D	Â

Reporting Owners

Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
Schneider Stanley Harvey C/O THE ORCHARD, INC. 100 PARK AVENUE, 17TH FLOOR NEW YORK, NY 10017	Â	Â	  EVP & General Counsel	Â

Signatures

/s/ Marianne Sarrazin for Stanley H. Schneider		12/05/2007
**Signature of Reporting Person		Date

Explanation of Responses:

*	If the form is filed by more than one reporting person, see Instruction 5(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1)	These options and restricted stock awards were granted on November 13, 2007. They vest over a four-year period and become exercisable or receivable as to 1/4 of the shares on November 13, 2008, with quarterly vesting thereafter for a period of 36 months subject to acceleration or termination in certain circumstances. The restricted stock awards have no expiration date.
(2)	Amount and exercise price reflect the one for three reverse stock split of the issuer's common stock that took effect November 14, 2007. Without giving effect to the reverse stock split, the stock options have an exercise price of $2.48 and represent the right to acquire 10,000 shares of common stock, and the restricted stock awards represent the right to receive 10,000 shares of common stock.

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