Internetworking.

4CONTROL media connects offline and online communities

Imagine a star-studded awards show held at one of New York City's posh night spots, with appearances by Busta Rhymes, Wyclef, L.L. Cool J, Missy Elliot and other hip-hop artists. No it's not the Soul Train Awards. Welcome to the Online Hip-Hop Awards, the Grammys of the Net, where fans nationwide are able to go online and vote in 21 categories ranging from Website of the Year and Best Online Magazine, to Best New Artist and Album of the Year.

"This is the first music awards show to bridge the divide between a worldwide community of fans and artists using the Internet and technology," says Felicia Palmer, the show's co-founder and executive producer. Having gained so much notoriety, there is talk of broadcasting next year's show on network or cable TV.

The Online Hip-Hop Awards is the brainchild of Palmer and Steven Samuel, co-CEOs of 4CONTROL, a new media production company based in New York. Since its founding in 1995, 4CONTROL has developed Web content, online promotions, and interactive CDs for such clients as MCA Records, Simon & Schuster, and the Tamara Hayle Mysteries series.

4CONTROL's biggest baby is Support Online Hip-Hop (SOHH, www.sohh.com), a virtual clearinghouse where Web enthusiasts worldwide congregate to share resources, gather information or simply find the latest scoop. "Community" is the growing emphasis behind many Internet companies and Websites today. Even major e-commerce sites are now adding enhanced community features to attract and retain customers. 4CONTROL is a pioneer that has stayed in tune with this movement.

Palmer and Samuel, who are both 28, first cut their teeth in the new media business in 1994 when they co-produced a monthly Internet music newsletter called 4CONTROL Music Wire. "We noticed the presence of a hip-hop environment on the Net, when it cost $1.99 to $2.99 per minute to get on AOL" says Palmer, a graduate of Cornell University. "There were crews of about 50 people [including Samuel, a rap artist at the time], who were getting online every night to meet in a music chat room and battle other MCs"

Out of this group of cyberrappers emerged an underground culture. They even created their own language--keystyle--using the computer to write rhymes online, says Samuel. "The purpose of the newsletter was to introduce other young people to the Internet," he adds. "We had columns about music events that were happening online"

Hoping to attract advertisers, Palmer and Samuel mailed copies of the first issue and a promotional sheet to more than 500 record executives at 100 different companies, including Arista and Sony. The response: little to none. After only three issues, they halted production, no longer able to shell out-of-pocket expenses of about $1,500 a month to print roughly 500 copies.

Undaunted, they decided to recast the publication as a Website, which was a lot cheaper to run, at around $100 a month. The enterprising duo self-taught themselves about HTML and programming. They officially launched SOHH.com in 1996 to recognize the efforts of Webmasters and hip-hop fans. "In 1994, there was something called the free speech online [blue ribbon campaign]. It was against the censorship of content on the Internet. Anyone who supported the campaign posted a blue ribbon on their site. We decided to come up with something similar, our own symbol," says Palmer.

Indeed, Palmer and Samuel were able to get other sites to affix an icon on their homepages referred to as the "binary MC." Within a 12-month period, SOHH grew from three to 75,000 members. In addition to daily hip-hop news, reviews, commentary, and a worldwide discussion board, SOHH provided tips and techniques for Web developers. A major feature area was Search Online Hip-hop, a search engine containing a database of more than 10,000 Websites.

Unable to get financial support for their venture--this time, sponsorship dollars--from major record labels, the partners took on outside work. Palmer became the new media manager for Essence magazine in 1996, where she launched and oversaw the daily operations of Essence online and co-produced the "Essence Virtual Makeover," a CD-BOM title by Segasoft. Samuel did freelance Web development work for companies such as CVS and Chrysler.

The turnaround came in 1997 when the Netpreneurs created the Online Hip-Hop Awards. SOHH did a Webcast with a streaming multimedia site, 88HipHop.com, announcing the award winners of the best in hip-hop music and Websites. "You had kids, 14 and 15 years old, who were coming home after school and building fan-dedicated sites that had better content and were more informative than those produced by a lot of the major record labels," says Samuel. "We created the awards to pay homage to the efforts [of these young Web masters] and their hard work."

Taking it up a notch in 1999, the production integrated an offline marketing campaign in 500 retail stores nationwide, an online promotional campaign across more than 50 Websites (including the Source.com and Vibe.com) and a star-studded ceremony broadcast live over the Net. Similar to the People's Choice Awards, some 500,000 fans cast their votes.

Last year's awards show cost a little under $10,000 to produce; all of which was self-financed by Palmer and Samuel. The 2000 awards ceremony was sponsored by TWEC.com, the Arizona Jean Co., and Yahoo! Music. It was also broadcast on WQHT Hot 97 radio. "We have come a long way from last year; when I couldn't pay my mortgage, to this year," says Palmer, who raised $500,000 in sponsorship. "The bottom line is that there are only a few ways you can make money on the Web--advertising, sponsorship, and e-commerce"

SOHH had a major coup this year when it partnered with Urban Box Office (UBO) Network, a new media company that was co-founded by the late George Jackson, the former movie producer and CEO at Motown. UBO is a multimillion dollar venture catering to urban lifestyle and culture via a collection of sites covering music, animation, news, and entertainment. In addition, UBO offers free ISP, e-mail, personal homepages, and e-commerce solutions.

In exchange for a minority equity stake, UBO brought cash to the table--more than $2 million--office space, and access to high technology tools. In addition to a redesign, SOHH is taking advantage of new video capabilities. SOHH currently produces live animation and three 30-minute live action programs featuring artists working in the studio, perform, ing on stage, and coasting at home. There's also a 10-minute segment or close-up on artists and their latest albums. Palmer and Samuel now have their eyes set on a virtual mall, broadband distribution (i.e., cable modems), and wireless communications. Deals are in the works that will bring SOHH to cell phones, Palm organizers, and other hand-held devices.

"Online is becoming convergent with other media, so we are looking to create content that is also applicable to offline models," says Palmer. However, she insists that community is still the driving force.

Having just completed an 18-city promotional tour in conjunction with the Lyricist Lounge (MTV's hottest new program), SOHH is relying more on grass roots efforts and viral marketing--where others spread the word online and it catches on like a virus. "As the digital divide gap begins to close and more people access the Internet, there still needs to be a compelling reason for them to stay online," says Palmer. "In the end it is about giving people a reason to be on the Internet. That's what makes our site so important to our audience."