On March 17, 2008, ARTISTdirect, Inc. (the "Registrant") entered into a Forbearance and Consent Agreement (the "Agreement"), by and among the Registrant, U.S. Bank National Association, as Collateral Agent, and JMB Capital Partners, L.P., JMG Capital Partners, L.P., JMG Triton Offshore Fund, Ltd., and CCM Master Qualified Fund, Ltd (collectively, the "Initial Purchasers"). Under the terms of the Agreement, the Initial Purchasers agreed to forbear from exercising any of their rights and remedies under the Senior Financing Documents (as defined in the Agreement) with respect to Existing Senior Defaults (as defined in the Agreement) for a period commencing February 20, 2008 and ending on December 31, 2008. Pursuant to the Agreement, the interest rate on the unpaid balance of the notes issued pursuant to the Senior Financing Documents will be 15% per annum from February 20, 2008 until September 30, 2008. If such notes have not been paid in full by September 30, 2008, the interest rate will be increased to 16% per annum retroactive to February 20, 2008, with such additional interest for the period from February 20, 2008 until September 30, 2008 to be paid on September 30, 2008.

(d) Exhibits.

Exhibit Number                                   Title

4.1               Forbearance and Consent Agreement dated as of February 20, 2008 by
                  and among the Registrant, U.S. Bank National Association, as
                  Collateral Agent, JMB Capital Partners, L.P., JMG Capital Partners,
                  L.P., JMG Triton Offshore Fund, Ltd., and CCM Master Qualified
                  Fund, Ltd.