FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN 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 * Scholl Greg J.   2. Issuer Name and Ticker or Trading Symbol Digital Music Group, Inc. [ORCD] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) __X__ Director _____ 10% Owner __X__ Officer (give title below) _____ Other (specify below) CEO,President,Treasurer & Sec. (Last) (First) (Middle) C/O THE ORCHARD, INC., 100 PARK AVENUE, 17TH FLOOR 3. Date of Earliest Transaction (Month/Day/Year) 11/13/2007 (Street) NEW YORK, NY 10017 4. If Amendment, Date Original Filed(Month/Day/Year) 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 Acquired, Disposed of, or Beneficially Owned

1.Title of Security (Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security (Instr. 3)

2. Conversion or Exercise Price of Derivative Security

3. Transaction Date (Month/Day/Year)

3A. Deemed Execution Date, if any (Month/Day/Year)

4. Transaction Code (Instr. 8)

5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5)

6. Date Exercisable and Expiration Date (Month/Day/Year)

7. Title and Amount of Underlying Securities (Instr. 3 and 4)

8. Price of Derivative Security (Instr. 5)

9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)

10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4)

11. Nature of Indirect Beneficial Ownership (Instr. 4)

Code

V

(A)

(D)

Date Exercisable

Expiration Date

Title

Amount or Number of Shares

Stock option (right to buy)

$ 2.48 (1)

11/13/2007

A

100,000 (1)

11/13/2007(2)

11/13/2014

Common stock

100,000 (1)

$ 0

100,000 (1)

D

Restricted stock award

$ 0.01

11/13/2007

A

100,000 (1)

11/13/2007(2)

(2)

Common stock

100,000 (1)

$ 0

100,000 (1)

D

Deferred stock award

$ 0

11/13/2007(3)

A

344,035 (1)

11/13/2007(3)

(3)

Common stock

344,035 (1)

$ 0

344,035 (1)

D

Deferred stock award

$ 0

11/13/2007(3)

A

1,393

11/13/2007(3)

(3)

Series A Preferred Stock

1,393

$ 0

1,393

D

Reporting Owners

Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
Scholl Greg J. C/O THE ORCHARD, INC. 100 PARK AVENUE, 17TH FLOOR NEW YORK, NY 10017	X		CEO,President,Treasurer & Sec.

Signatures

/s/ Marianne Sarrazin for Greg Scholl		11/15/2007
**Signature of Reporting Person		Date

Explanation of Responses:

*	If the form is filed by more than one reporting person, see Instruction 4(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)	Amount and exercise price do not reflect the one for three reverse stock split of the issuer's common stock that took effect November 14, 2007.
(2)	These options and restricted stock awards were granted on November 13, 2007 under the terms of Mr. Scholl's employment agreement with the issuer as described in the Proxy Statement (as defined below). One-sixth of each vest every three months over the course of 18 months subject to acceleration or termination in certain circumstances. Giving effect to the reverse stock split, the stock options have an exercise price of $7.44 and represent the right to acquire 33,333 shares of common stock, the restricted stock award represents the right to acquire 33,333 shares of common stock, and the deferred stock award represents the right to acquire 114,678 shares of common stock.
(3)	Represent shares subject to deferred stock awards of The Orchard Enterprises Inc. granted October 2, 2007 (to replace awards granted July 10, 2007) that were assumed by the issuer in connection with the merger of The Orchard Enterprises, Inc. into a subsidiary of the issuer (the "Merger") as described in the definitive proxy statement of the issuer as filed with the Securities and Exchange Commission on October 5, 2007 and first mailed to the issuer's stockholders on October 10, 2007 (the "Proxy Statement").The deferred stock awards are fully vested and non-forfeitable. The shares will be transferred to Mr. Scholl as follows: upon the earlier of (a)(i) June 1, 2008 in respect of 20% of the awarded shares and (ii) January 1, 2009 in respect of the remaining 80% of the awarded shares; (b) a change in control (as defined in the terms of the award) and (c) death or disability.

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