=====================================================================
                       THE INDUSTRY STANDARD'S  
                         B E A T  S H E E T 
       A Weekly Report on the Convergence of Music and the Net
=====================================================================
                                       | http://www.thestandard.com |
    
Tuesday, September  5, 2000

TOP STORY:
* Discovering Stars, Attracting Eyeballs: What's really motivating Net
music sites?

NET NOISE:
* Daveyd.com: Davey D's Hip-Hop Corner

BEATS:
* MP3.com Trial Pushes Onward
Universal Records attorney asks judge for $450 million in copyright
infringement damages

* Dot Dot Dot
Out, Damned Napster . . . Courtney's Book Deal . . . Layoffs at Scour
. . . RIAA News

SOUND OFF:
* Why haven't any bands or recording artists made it big on the
Internet?


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TOP STORY
~~~~~~~~~
Discovering Stars, Attracting Eyeballs

What's really motivating Net music sites?

By Julene Snyder

Like a sweet-talking Lothario, the Internet has made a lot of
promises. Sure, it's followed through on some of them, but one of its
most dazzling whispered avowals remains unfulfilled.

"I'll make you a star," it swore. We swooned - then waited patiently.
We're still waiting, in fact: Though numerous Web sites are poised to
launch recording artists into careers, not a single musical act
discovered on the Internet has broken into the big leagues.

If we believe the hype - and God knows we're trying - it's all just a
matter of time before a musician discovered on the Internet makes it
big. After all, Garageband.com gives away a $250,000 recording
contract every two months. Tonos Network, a "music insider's network,"
is liberally sprinkled with "hitmakers" who want to develop
undiscovered talent. Farm Club Online says that "somebody's going to
get a record deal." SpinRecords.com calls itself the "original farm
label."

You'll find enough sugar-coated text on the various sites to make you
consider quitting your day job so that you'll be home to take the
phone call announcing your big break.

But could it be that the real, but unspoken, goal of Web sites like
these isn't to discover the next Eminem or Britney Spears, but to reap
advertising dollars and other revenues based on the sheer numbers of
eager Web surfing aspiring artists who wouldn't mind fame, fortune and
a recording career?

One of those sweet-talkers is Tonos Network CEO Matt Farber says the
site is poised to take advantage of "what the Internet is best for -
networking people together and giving them access that couldn't have
existed before the Internet." In fact, while Tonos pits amateur
artists against one another in various musical "challenges" -
promising that the winner will, at the very least, get a listen from
an actual "hitmaker" - much of the site is devoted to providing
information for fame-seeking musicians. The Mentor section has a
segment on launching a career that includes feature stories about the
nuts-and-bolts of the business and offers interactive music lessons
from players like pianist David Foster and Babyface. For now, it's all
free, though Farber says the site may eventually charge for services
that will further users' "craft and career."

Thus far, Tonos has just one success story: 12-year-old "Vocal
Challenge Winner" Alysha Antonino, who caught the ear of Atlantic
Records VP Darren Higman and ended up on the "Pokemon 2000"
soundtrack. Higman told USA Today that he stumbled upon her music by
accident while surfing around on the Net.

Having one song on one compilation for one movie with a limited
audience, though, isn't exactly the kind of story that stops the
presses.

The rest of the sites' "success stories" are hardly anything to write
home about either. The most visible is the band Fisher, signed by Farm
Club from MP3.com. The band's Web site, which proclaims that Fisher is
the Internet's first music success story, posits somewhat immodestly
that the group not only makes music, "it's making history." True, the
band's leader, Kathy Fisher, sings that cover version of The Rascals'
1968 hit, "People Got to Be Free" on Verizon's ubiquitous commercials.
It's a job, yes, but hardly history in the making.

You'd think musician Michelle Cross' $250,000 recording contract
awarded last month by Garageband.com would generate quite a buzz. She
has a radio-friendly single in the song "Sushi Queen" and a voice
reminiscent of a more-mainstream Polly Jean Harvey. Yet Cross admits
that she hasn't exactly fielded a flood of calls from major labels,
and her artist's page at MP3.com reveals that she's made just $2.49 in
"payback for playback" earnings.

So, do bright lights and big deals beckon? It remains to be seen. Even
without chart-topping success stories to speak of, quite a few heavy
hitters in the music industry seem to be banking on the idea that
there is adequate demand for sites that might find the next huge
recording star - even if they don't. For now, perhaps all we can
realistically hope for from Internet "star finders" is a more level
playing field - and lots of eyeballs.


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NET NOISE
~~~~~~~~~
Daveyd.com

The man behind DaveyD's Hip-Hop Corner: The New Source for the Hip-Hop
Generation is either modest enough to think that visitors aren't
interested in the details of his own biography, or he's arrogant
enough to think anybody who drops by already knows exactly who he his.
No matter, Bay Area hip-hop commentator and writer Davey D has street
cred to spare. He's put together a great resource with this site: It's
well-organized, easily navigated, packed with content and free of
annoying bells and whistles. The subtitle may be a thinly veiled dig
at The Source magazine, but the agenda here seems to be informing
hip-hop fans about what music is breaking big on the street and
keeping political and social issues on the front-burner. Davey D has a
passionate way with a pen, and he's not afraid to take on touchy
subjects. Get a crash course on the history of hip-hop or catch up on
the latest celebrity news at a glance. Check out essays by folks like
KRS One and find articles dealing with provocative subjects like the
"role of the hip-hop album critic" and whether it's ever acceptable
for an artist to pull a gun on a journalist for writing an
unflattering article. Even if you're not up on the genre, you'll find
plenty here to get you thinking. There's no pretense, and certainly
there's no mincing around tough issues. There's just Davey D, telling
it like he sees it.


----------------------------------------------------------------------


BEATS
~~~~~
MP3.com Trial Pushes Onward

Universal Records attorney asks judge for $450 million in copyright
infringement damages.

Just can't get enough of that courtroom stuff? Well, filling the gap
before the new TV season starts can be a trying proposition, so the
helpful writers at newspapers, Web sites, magazines and God knows
where else have passed these last days of summer by dishing up a
blow-by-endless-blow of Judge Jed Rakoff's courtroom over the last
week. The latest and biggest news is that Universal Records attorney
Hadrian "Harry" Katz has asked the judge to award his client a
unprecedented $450 million in copyright infringement damages - a
penalty so stiff that, if awarded, it could be a death sentence for
MP3.com. The case could be decided as soon as Wednesday, but
Inside.com reports that the total cost to MP3.com won't be determined
until the next phase of the trial. Looking back at other media
outlets' coverage over the last few days, we're left with the
following questions: Is Michael Robertson a bit wishy-washy in public
statements? ZDNet poses the question, but can't seem to find a source
that will come right out and say so. Is MP3.com a "startup"? It must
be, because the New York Times said so. An interesting tidbit came
from CNET, which tells us that MP3.com employees earned $20 for each
CD they contributed to the MyMP3.com database of music. But how can it
be that no one asks the big question: Why does Robertson consistently
play such awful music in demos? The Seattle Times noted in passing
that Robertson inflicted The Steve Miller Band and Stevie Ray Vaughn
on people sitting in a darkened courtroom, but it refrained from
elaborating on which songs were chosen. I can't help hoping that the
Steve Miller song was "The Joker" ("Some people call me Maur-ice").
If, implausibly, you haven't had enough, find more at
http://www.thestandard.com/article/display/0,1151,18069,00.html?nl=bts

Dot Dot Dot

Out, Damned Napster . . . Courtney's Book Deal . . . Layoffs at Scour.
.. . RIAA News

Poor Napster just can't get no satisfaction. Last Thursday, the
Gartner Group, a technology research firm, reported that a whopping 34
percent of colleges and universities have banned the application from
their servers, citing moral and legal issues (although one suspects
bandwidth issues may also play a role). But banning Napster doesn't
necessarily stop file swapping. ZDNet published a story last week that
said dozens of schools will offer students I-drive's memory storage
system, which theoretically can be used in a Napster-like fashion.
Š We're pleased to hear the news that HarperCollins has
commissioned Courtney Love to write a book about her experiences with
the record industry. But we're downright tickled by this headline from
Radio Undercover: "Courtney to Lift the Skirt of the Music Industry
and Poke Under its Knickers." ... Scour announced late Friday that
it was delaying its next round of financing and laying off 52 of its
70 employees. Scour said the decisions came after concerns about the
pending copyright infringement suit filed by the Motion Picture
Association of America and the Recording Industry Association of
America. ... Meanwhile, the RIAA reports that mid-year figures are
in for CD sales, and rejoicing is in order: The number of full-length
CDs manufacturers shipped to the U.S. is at an all-time high. In other
RIAA news, the "voluntary parental advisory label" system will be
revised starting Oct. 1 to "address Internet and advertising issues
and to further meet industry and consumer needs." Translation: Slap
the sticker all over ads and the Internet, when applicable.


SOUND OFF
~~~~~~~~~
This week's question: Why haven't any bands or recording artists made
it big on the Internet?

E-mail your opinions to julene@well.com with "sound off" in the
subject line, and we'll print a selection of the responses in next
week's newsletter. Letters may be edited for clarity and length, so
keep them short and include your name and affiliation if any.

FEEDBACK:
Last week's question: Which candidate will best further your
digital-music agenda? Why?

Al Gore is more likely than Bush to support the record industry and
artists vs. the broadcast, electronics and digital industries because
he is far more intelligent, conscientious and familiar with the issues
and the history of these battles - and he is not as easily swayed by
money. He understands the long term and international implications.
Basically, industries (many ruled by foreign companies) that are
dependent on music do not want to pay for it. Since their big business
lobbies are better funded and carry more influence, someone like Bush
(who is ignorant and all about big business) will certainly sell out
American artists - and American owners of intellectual property -
which is among our nation's biggest exports. In the long run, this
devaluation of our country's most valued assets hurts our economy. But
in the short run, Bush and his Republican cronies will put more money
in their pockets.
- Anita Rivas
Entertainment attorney
Los Angeles.

It's got to be (George) Bush ... the U.K. rock band who made it big in
the States!
- Ed Barker, London

The Tipper connection is worrisome, but Gore will definitely be more
informed on all things related to the Internet, so at least he'll be
up on the issues. If Bush wins, I suspect we'll have other things to
occupy us besides whether (the next) Napster is going to be shut down
or not. Like no more legal abortions, for starters.
- Maureen Geiger


STAFF
~~~~~
Written by Julene Snyder (julene@well.com). 

Editor: Steven Zeitchik (szeitchik@thestandard.com). 

Deputy Editor: Michele Keller (mkeller@thestandard.com). 


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