Digital Music Group acquires the digital rights to musical recordings and distributes them to online music stores. It’s the songs that people with Apple iPods, for example, download from the web, paying a small fee. The industry and consumers are moving away from compact discs and other physical formats. 

Brothers Mitchell and Peter Kouloris, who founded the company, hope to raise about $27 million from the public offering. Proceeds would help add to the thousands of titles in their musical library. Formal documents were filed with the Securities & Exchange Commission this week … with an eye toward taking the company public on the NASDAQ stock exchange.