UNITED STATES
             SECURITIES AND EXCHANGE COMMISSION
                    Washington, DC 20549

                         FORM 10-QSB
 QUARTERLY REPORT FOR SMALL BUSINESS ISSUERS SUBJECT TO THE
               1934 ACT REPORTING REQUIREMENTS

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE
   SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2001
Commission File No. 000-30253






                      MUSIC ETC., INC.
   (Exact name of registrant as specified in its charter)







Nevada                                            88-0426887
(State of organization) (I.R.S. Employer Identification No.)

8764 Carlitas Joy Court, Las Vegas, NV 89117
(Address of principal executive offices)

Registrant's telephone number, including area code (702) 228-
4688

Check whether the issuer (1) filed all reports required to
be file by Section 13 or 15(d) of the Exchange Act during
the past 12 months and (2) has been subject to such filing
requirements for the past 90 days.  Yes X

There are 6,000,000 shares of common stock outstanding as of
November 15, 2001.



                PART I - FINANCIAL INFORMATION

ITEM 1.   FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

                INDEPENDENT AUDITORS' REPORT

Board Of Directors
Music Etc., Inc.
Las Vegas, Nevada

     I have audited the accompanying balance sheets of
Music Etc., Inc. (a developmental stage company), as of
September 30, 2001 and September 30, 2000 and the related
statements of stockholders' equity for September 30, 2001
and statements of operations and cash flows for nine months
ended Sept. 30, 2001 and the two years ended December 31,
2000 and December 31, 1999 and the period September 20, 1993
(inception) to September 30, 2001. These financial
statements are the responsibility of the Company's
management. My responsibility is to express an opinion on
these financial statements based on my audit.

     I conducted my audit in accordance with auditing
standards generally accepted in the United States of
America. Those standards require that I plan and perform the
audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting
principles used and significant estimates made by
management, as well as evaluating the overall financial
statement presentation. I believe that my audit provides a
reasonable basis for my opinion.

     In my opinion, the financial statements referred to
above present fairly, in all material respects, the
financial position of Music Etc., Inc. as of September 30,
2001 and 2000 and the related statements of stockholders'
equity for Sept. 30, 2001 and statements of operations and
cash flows for the nine months ended Sept. 30, 2001 and the
two years ended December 31, 2000 and December 31, 1999 and
the period September 20, 1993 (inception) to September 30,
2001 in conformity with accounting principles generally
accepted in the United States of America.

     The accompanying financial statements have been
prepared assuming the Company will continue as a going
concern. As discussed in Note 5 to the financial statements,
the Company has had no operations and has no established
source of revenue. This raises substantial doubt about its
ability to continue as a going concern. Management's plan in
regard to these matters are also described in Note 5. The
financial statements do not include any adjustments that
might result from the outcome of this uncertainty.


/s/ Kurt D. Saliger
Kurt D. Saliger C.P.A.
November 06, 2001


                       MUSIC ETC., INC.
                 (A Development Stage Company)
                        BALANCE SHEETS

                            ASSETS

<Table>

                                    <c>             <c>
                                       Sept.           Sept.
                                       30, 2001        30, 2000

CURRENT ASSETS
  Cash                                            $0                $0
                                          ==========        ==========
     TOTAL CURRENT ASSETS                         $0                $0
                                          ==========        ==========
 TOTAL ASSETS                                     $0                $0
                                          ==========        ==========

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
  Officers Advances                           $4,152            $3,267
                                          ==========        ==========
  TOTAL CURRENT LIABILITIES                   $4,152            $3,267


STOCKHOLDERS EQUITY
Preferred Stock, $0.001 Par Value
Authorized 10,000,000 Shares
Issued and Outstanding
At Sept. 30, 2001 - None                          $0

Common stock, $.001 par value
authorized 50,000,000 shares
issued and outstanding at
Sept. 30, 2000 - 6,000,000 shares                               $6,000
Sept. 30, 2001 - 6,000,000 shares             $6,000

Additional paid in Capital                  ($2,315)          ($2,315)

Deficit Accumulated during
development stage                           ($7,837)          ($6,952)
                                          ==========        ==========

TOTAL STOCKHOLDERS' EQUITY                  ($4,152)          ($3,267)
                                          ==========        ==========

TOTAL LIABILITIES AND
STOCKHOLDERS EQUITY                               $0                $0
                                           =========         =========
</Table>
        See accompanying notes to financial statements
                              -2-
                       MUSIC ETC., INC.
                 (A Development Stage Company)
                    STATEMENT OF OPERATIONS


<Table>

                       <c>             <c>             <c>
                               Nine            Nine
                              Months          Months      Sept. 20, 1993
                               Ended           Ended        (Inception)
                               Sept.           Sept.         to Sept.
                              30,2001         30,2000         30,2001

INCOME
Revenue                       $      0          $       0       $       0
                            ----------         ----------     -----------
TOTAL INCOME                  $      0          $       0       $       0

EXPENSES
General, Selling
and Administrative            $    885          $     885       $   7,837

Amortization                  $      0          $       0       $       0


                           -----------         ----------     -----------
TOTAL EXPENSES                $    885          $   3,000       $   7,837
                           -----------         ----------     -----------
NET PROFIT (LOSS)             $    885          $   3,000       $   7,837
                           ===========         ==========     ===========
NET PROFIT (LOSS)
PER SHARE                        (NIL)              (NIL)           (NIL)
                           ===========         ==========     ===========

AVERAGE NUMBER OF
SHARES OF COMMON
STOCK OUTSTANDING            6,000,000          6,000,000       6,000,000
</Table>





        See accompanying notes to financial statements
                              -3-
                       MUSIC ETC., INC.
                 (A Development Stage Company)
                    STATEMENT OF OPERATIONS


<Table>

                      <c>               <c>              <c>
                               Three            Three
                              Months            Months      Sept. 20, 1993
                               Ended            Ended         (Inception)
                               Sept.            Sept.          to Sept.
                              30,2001          30,2000          30,2001

INCOME
Revenue                       $       0            $      0      $        0
                            -----------          ----------      ----------
TOTAL INCOME                         $0                  $0              $0

EXPENSES

General, Selling
and Administrative            $       0            $  1,000       $   7,837

Amortization                  $       0            $      0       $       0


                            -----------          ----------      ----------
TOTAL EXPENSES                $       0            $  1,000       $   7,837
                            -----------          ----------      ----------
NET PROFIT (LOSS)                    $0              $1,000          $7,837
                            ===========          ==========      ==========
NET PROFIT (LOSS)
PER SHARE                         (NIL)               (NIL)           (NIL)
                            ===========          ==========      ==========

AVERAGE NUMBER OF
SHARES OF COMMON
STOCK OUTSTANDING             6,000,000           6,000,000       6,000,000
                              =========          ==========      ==========
</Table>











        See accompanying notes to financial statements.
                              -4-
                       MUSIC ETC., INC.
                 (A Development Stage Company)
                    STATEMENT OF OPERATIONS


<Table>

                       <c>            <c>             <c>
                               Year           Year        Sep. 20, 1993
                              Ended           Ended        (Inception)
                             December       December         to June
                             31, 2000       31, 1999        30, 2001

INCOME
Revenue                      $       0         $       0        $      0
                            ----------         ---------      ----------
TOTAL INCOME                 $       0         $       0        $      0

EXPENSES

General, Selling
and Administrative           $   3,000         $     267        $  7,837

Amortization                 $       0         $       0        $      0


                            ----------         ---------      ----------
TOTAL EXPENSES               $   3,000         $     267        $  7,837
                            ----------         ---------      ----------
NET PROFIT (LOSS)            ($ 3,000)         ($   267)       ($ 7,837)
                            ----------         ---------      ----------
NET PROFIT (LOSS)
PER SHARE                        (NIL)             (NIL)           (NIL)
                            ==========         =========      ==========

AVERAGE NUMBER OF
SHARES OF COMMON
STOCK OUTSTANDING            6,000,000         6,000,000       6,000,000
                            ==========         =========      ==========
</Table>








See accompanying notes to financial statements
                              -5-
                                MUSIC ETC., INC.
                          (A Development Stage Company)
                  STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
                               September 30, 2001

<Table>

                      <c>             <c>              <c>              <c>
                                  Common Stock                                (Deficit)
                                                                             Accumulated
                             Number                          Additional         During
                               of                             paid-in        Development
                             Shares          Amount           Capital           Stage

Balance Dec. 31, 1996               20              $200                $0           ($200)

April 7, 1997
Issued for cash                 24,980            $3,485

Net Loss
December 31, 1997                                                                  ($3,485)
                           -----------         ---------         ---------       ----------
Balance, Dec. 31, 1997          25,000            $3,685                $0         ($3,685)

Net Loss,
December 31, 1998                                                                        $0

Changed from no par
Value to $0.001
September 21, 1999                              ($3,660)             3,660
Forward stock split
240 to 1
September 21, 1999           5,975,000          ($5,975)          ($5,975)

Net loss
December 31, 1999                                                                    ($267)
                           ===========         =========         =========       ==========

Balance, Dec. 31, 1999       6,000,000            $6,000          ($2,315)         ($3,952)

Net loss
December 31, 1999                                                                  ($3,000)
Net loss
September 30, 2001                                                                   ($885)
                           -----------         ---------         ----=----       ----------
Balance
September 30, 2001           6,000,000            $6,000          ($2,315)         ($7,837)
                           ===========          ========         =========         ========
</Table>


                 See accompanying notes to financial statements.
                              -6-

                        MUSIC ETC., INC.
                  (A Development Stage Company)
                     STATEMENT OF CASH FLOWS


<Table>

                         <c>              <c>             <c>
                                 Nine             Nine
                                Months           Months       Sept 20,1993
                                 Ended           Ended        (Inception)
                                 Sept.           Sept.          to Sept.
                               30, 2001         30, 2000        30, 2001


CASH FLOW FROM
OPERATING ACTIVITIES

Net (Loss)                         ($885)          ($3,000)        ($7,837)

Adjustment to reconcile
net loss to net cash
provided by operating
activities

Amortization                           $0                $0              $0
Officer Advances                     $885            $3,000          $4,152
                              -----------        ----------      ----------
Net cash used in
Operating activities                   $0                $0        ($3,685)


CASH FLOW FROM
FINANCING ACTIVITIES
Issue Common Stock                     $0                $0          $3,685
                              -----------         ---------      ----------
Net Increase
(decrease) in cash                     $0                $0              $0

Cash, Beginning
Of period                              $0                $0              $0


Cash, End                     -----------         ---------      ----------
Of Period                              $0                $0              $0
                              -----------         ---------      ----------
</Table>






         See accompanying notes to financial statements.
                               -7-


                        MUSIC ETC., INC.
                  (A Development Stage Company)
                     STATEMENT OF CASH FLOWS


<Table>

                          <c>             <C>            <c>
                             Three           Three
                             Months          Months         Sept 20,1993
                             Ended           Ended          (Inception)
                             Sept.           Sept.          to Sept.
                             30, 2001        30, 2000       30, 2001


CASH FLOW FROM
OPERATING ACTIVITIES

Net (Loss)                         ($885)          ($1,000)      ($7,837)

Adjustment to reconcile
net loss to net cash
provided by operating
activities

Amortization                           $0                $0            $0
Officer Advances                     $885                $0        $4,152

                               ----------        ----------     ---------
Net cash used in
Operating activities                   $0                $0      ($3,685)


CASH FLOW FROM
FINANCING ACTIVITIES
Issue Common Stock                     $0                $0        $3,685
                               ----------        ----------     ---------
Net Increase
(decrease) in cash                     $0                $0            $0

Cash, Beginning
Of period                              $0                $0            $0


Cash, End                      ----------        ----------     ---------
Of Period                              $0                $0            $0
                               ==========        ==========     =========
</Table>






         See accompanying notes to financial statements
                               -8-

                        MUSIC ETC., INC.
                  (A Development Stage Company)
                     STATEMENT OF CASH FLOWS

<Table>

                        <c>             <c>              <c>
                                Year            Year          Sept. 20,
                                                                1993
                                Ended           Ended        (Inception)
                              December        December         to June
                              31, 2000        31, 1999        30, 2001
CASH FLOW FROM
OPERATING ACTIVITIES

Net (Loss)                      ($3,000)            ($267)       ($7,837)

Adjustment to reconcile
net loss to net cash
provided by operating
activities

Amortization                          $0                $0             $0
Officer Advances                  $3,000              $267       ($4,152)
                             -----------       -----------      ---------
Net cash used in
Operating activities                  $0                $0             $0

CASH FLOW FROM
FINANCING ACTIVITIES
Issue Common Stock                    $0                $0             $0
                             -----------       -----------      ---------
Net Increase
(decrease) in cash                    $0                $0             $0

Cash, Beginning
Of period                             $0                $0             $0
Cash, End                    -----------       -----------      ---------
Of Period                             $0                $0             $0
                             ===========       ===========      =========
</Table>









         See accompanying notes to financial statements
                               -9-


                        MUSIC ETC., INC.
                  (A Development Stage Company)
                  NOTES TO FINANCIAL STATEMENTS
            September 30, 2001 and September 30, 2000



NOTE 1 -ORGANIZATION AND ACCOUNTING POLICIES

         The Company was incorporated September 20, 1993 under
the laws of the State of Nevada. The Company was organized to
engage in any lawful activity. The Company currently has no
operations and, in accordance with SFAS #7, is considered a
development stage company.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     Accounting Method
          The Company records income and expenses on the accrual
          method of accounting.

     Estimates
          The preparation of financial statements in conformity
          with generally accepted accounting principles requires
          management to make estimates and assumptions that
          affect the reported amounts of assets and liabilities
          and disclosure of contingent assets and liabilities at
          the date of the financial statements and the reported
          amounts of revenue and expenses during the reporting
          period. Actual results could differ from those
          estimates.

     Cash and equivalents
          The Company maintains a cash balance in a non-interest
          bearing bank that currently does not exceed federally
          insured limits. For the purpose of the statements of
          cash flows, all highly liquid investments with the
          maturity of three months or less are considered to be
          cash equivalents. There are no cash equivalents as of
          September 30, 2001.

     Income Taxes
          Income taxes are provided for using the liability
          method of accounting in accordance with Statement of
          Financial Accounting Standards No. 109 (SFAS #109)
          "Accounting for Income Taxes". A deferred tax asset or
          liability is recorded for all temporary differences
          between financial and tax reporting. Deferred tax
          expense (benefit) results from the net change during
          the year of deferred tax assets and liabilities.





                              -10-
                        MUSIC ETC., INC.
                  (A Development Stage Company)
                  NOTES TO FINANCIAL STATEMENTS
            September 30, 2001 and September 30, 2000



NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

     Reporting on Costs of Start-Up Activities
          In April 1998, the American Institute of Certified
          Public Accountants issued Statement of position 98-5
          ("SOP 98-5"), "Reporting the Costs of Start-up
          Activities" which provides guidance on the financial
          reporting of start-up costs and organizational costs.
          It requires costs of start-up activities and
          organizational costs to be expensed as incurred. SOP
          98-5 is effective for fiscal years beginning after
          December 15, 1998 with initial adoption reported as
          the cumulative effect of a change in accounting
          principle.

     Loss Per Share
          Net loss per share is provided in accordance with
          Statement of Financial Accounting Standards No. 128
          (SFAS #128) "Earnings Per Share".  Basic loss per
          share is computed by dividing losses available to
          common stockholders by the weighted average number of
          common shares outstanding during the period. Diluted
          loss per share reflects per share amounts that would
          have resulted if dilutive common stock equivalents had
          been converted to common stock. As of September 30,
          2001 the Company had no dilutive common stock
          equivalents such as stock options.

     Year End
          The  Company has selected December 31st as  its  fiscal
          year end.

     Year 2000 Disclosure
          The year 2000 issue had no effect on the Company.

NOTE 3 - INCOME TAXES

     There is no provision for income taxes for the year ended
     December 31,2000. The Company's total deferred tax asset as
     of September 30, 2001 is as follows:
          Net operating loss carry forward              $7,837
          Valuation allowance                           $7,837
          Net deferred tax asset                        $    0
     The federal net operating loss carry forward will expire
     in 2017 to 2019.



                              -11-

                        MUSIC ETC., INC.
                  (A Development Stage Company)
                  NOTES TO FINANCIAL STATEMENTS
            September 30, 2001 and September 30, 2000


NOTE 4 STOCKHOLDER'S EQUITY
     Common Stock
          The authorized common stock of the Company consists of
          50/000,000 shares with a par value of $0.001 per
          share.

          On July 27, 1995 the Company issued 20 shares of its
          no par value common stock in consideration of $200 in
          cash to one of its directors.

          On July 27, 1997 the Company issued 24,980 shares of
          its no par value common stock in consideration of
          $5,996 in cash to three of its directors.

          On September 21, 1999 the State of Nevada approved the
          Company's restated Articles of Incorporation that
          increased its capitalization from 25,000 common shares
          of no par value to 50,000,000 common shares with a par
          value of $0.001 and added 10,000,000 preferred shares
          with a par value of $0.001.

          On September 21, 1999 the Company forward split its
          common stock 240:1 thus increasing the number of
          outstanding common shares from 25,000 to 6,000,000
          shares.

     Preferred Stock
          The authorized preferred stock of the Company consists
          of 10,000,000 shares with a par value of $0.001 per
          share.

NOTE 5 GOING CONCERN.

          The Company's financial statements are prepared using
          generally accepted accounting principles applicable to
          a going concern, which contemplates the realization of
          assets and liquidation of liabilities in the normal
          course of business. However, the Company does not have
          significant cash or other material assets, nor does it
          have an established source of revenues sufficient to
          cover its operating costs and to allow it to continue
          as a going concern.







                              -12-





                        MUSIC ETC., INC.
                  (A Development Stage Company)
                  NOTES TO FINANCIAL STATEMENTS
            September 30, 2001 and September 30, 2000

NOTE 6 -RELATED PARTY TRANSACTIONS

     The Company neither owns nor leases any real or personal
     property. An officer of the Company provides office services
     without charge. Such costs are immaterial to the financial
     statements and accordingly, have not been reflected therein.
     the officers and directors of the Company are involved in
     other business opportunities. If a specific business
     opportunity becomes available, such persons may face a
     conflict in selecting between the Company and their other
     business interests. The Company has not formulated a policy
     for the resolution of such conflicts.

NOTE 7 -WARRANTS AND OPTIONS

     There are no warrants or options outstanding to acquire any
     additional shares of common or preferred stock.

NOTE 8 -OFFICER ADVANCES

     While the Company was seeking additional capital to advance
     its business plan, an officer of the Company has advanced
     funds on behalf of the Company to pay for any costs
     incurred by it. These funds are interest free.


















                              -13-


ITEM 2.   MANAGEMENT'S PLAN OF OPERATION

NOTE REGARDING PROJECTIONS AND FORWARD LOOKING STATEMENTS

This   report   contains  statements  that  are   forward-looking
statements  within  the meaning of the federal  securities  laws.
These   include  statements  about  our  expectations,   beliefs,
intentions  or  strategies for the future, which we  indicate  by
words  or  phrases  such  as  "anticipate,"  "expect,"  "intend,"
"plan,"  "will," "believe" and similar language. These statements
involve  known and unknown risks, including those resulting  from
economic  and  market conditions, the regulatory  environment  in
which  we  operate,  competitive activities, and  other  business
conditions, and are subject to uncertainties and assumptions  set
forth  elsewhere  in  this  registration  statement.  Our  actual
results  may differ materially from results anticipated in  these
forward-looking   statements.   We   base   our   forward-looking
statements  on  information currently available  to  us,  and  we
assume no obligation to update these statements.

                        Plan of Operation

We  are  in  the  developmental  stage  and  have  no established
source  of revenue.   We are currently developing a business plan
to  market  our web site which will enable users to learn to play
musical  instruments  online  through the varying levels of music
lessons  we  intend  to  make  available  shortly  after becoming
operational.   We  plan  to  take  the  following  steps  that we
believe  will  be  sufficient  to  provide us with the ability to
continue in existence:

1.   Management  believes  we  will  need  to  raise between
     US$300,000 and US$500,000 over the next 12 months which
     we  will  utilize  in  contracting  web hosts, web page
     designers  and   consultants  to   help   us  devise  a
     curriculum which will  be viable to teach music lessons
     online.  The exact amount we will need to raise will be
     determined  by  the then current market conditions, and
     the  status  of  cash  flow  within  Music  Etc.  It is
     anticipated  that  an  initial  injection of US$300,000
     will be required within the next 12  months. We propose
     to  raise  the  amount we need by selling shares of our
     common stock through this offering followed   by one or
     more private placements if necessary.

2.   We  hope  to generate revenue from the marketing of our
     web  site  to  offer  music  lessons  online.   This is
     expected  to  be  conducted upon the completion of this
     offering and availability of funds.   We  are currently
     conducting  ongoing  research  as  to  the  best way to
     market our web site. Music Etc. does not currently have
     any  formal  contracts  with  any internet sites or web
     hosts.

3.   Should management decide that raising funds by means of
     one or  more private placements would be detrimental to
     Music Etc.  and  its shareholders because our cash flow
     is  limited  as  a  result  of  little  or no revenues,
     we  will  attempt  to  secure  a line of credit with an
     established  financial  institution  to assist with the
     marketing and general working capital purposes.

We  intend  to utilize one or more of the credit card  processing
services to provide our students the option to either  pay online
with a credit card or have payments deducted straight  from their
checking  accounts.   These  services  will  range  anywhere from
$10/month  and  $0.25  per  transaction  fee  through CardService
International,  Inc.  to  $44.95/per  month,  which  includes the
processing  fee,  for  a  period of 24 months from  iTransact.com
(for  each  transaction  over  500  is  subject  to  a $0.10  per
transaction fee.

We  intend  to  launch  our  website with the aid of  consultants
within the music industry, which we will utilize their  knowledge
in  instructing individuals. These consultants will  be paid on a
per  project  basis, initially, from the proceeds  raised in this
offering.  Once  we have generated revenue and profits  enough to
sustain  our  working  capital on an ongoing basis,  we will hire
these  individuals on a part- to full-time basis.  We also intend
to  utilize  the  services  of website managers  and designers in
order  to  keep  our  operating  costs down.  Prices for services
which  will  design our website as well as manage the  site range
anywhere  from  $19.95/month  to $45/month, some with  a start up
fee,  for  the  small  to  medium  sized businesses just  getting
started.  Many  of  these  web hosting services also  include ISP
services  included  in  the  monthly  fees.   Eventually,  in the
future,  we  intend  to  hire  a full-time web page  designer and
manager  once  our  operations  grow  to  a  capacity  which will
require our own staff.

We  believe  that from the proceeds from this offering,  assuming
all the shares offered to the public are sold, we will be able to
finance our operations for at least 12 months.

                   PART II - OTHER INFORMATION

ITEM 1.   LEGAL PROCEEDINGS

The  Company  is  not  a  party  to any  material  pending  legal
proceedings and, to the best of its knowledge, no such action has
been threatened by or against the Company.

ITEM 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

No such matters were submitted during the most recent quarter.

ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K.

EXHIBITS

3.1   The  exhibits,  consisting of  the  Company's  Articles  of
Incorporation, are attached to the Company's Amended Form  10-SB,
filed  on  June  23,  2000. These exhibits  are  incorporated  by
reference to that Form.

3.2   The  exhibits,  consisting of  the  Company's  Bylaws,  are
attached  to the Company's Amended Form 10-SB, filed on June  23,
2000.  These exhibits are incorporated by reference to that Form.

                           SIGNATURES

Pursuant  to  the  requirements of Section 12 of  the  Securities
Exchange  Act  of  1934,  the Registrant  has  duly  caused  this
registration  statement  to  be  signed  on  its  behalf  by  the
undersigned, thereunto duly authorized.



                           Music Etc., Inc.



                           By: /s/ Lewis Eslick
                              Lewis Eslick, President



                           Date: November 15, 2001