<PAGE>   1
                     AT&T Dedicated Hosting Service Level 2

                                                           REDACTED EXHIBIT 10.4

--------------------------------------------------------------------------------
Customer Name                                           Service Period

Artist Direct                                           Twelve (12) months
--------------------------------------------------------------------------------

1.  INITIAL CONTRACT TERM, SERVICE PERIOD, AND BILLING

The Initial Contract Term begins on the Effective Date and, if applicable, ends
on the anniversary of the Implementation Date (as defined below) unless
terminated earlier in accordance with the provisions hereof. Charges for
customer's early cancellation of service are set forth on the Price Sheet. After
the Initial Contract Term, this Attachment shall continue in effect until
terminated as set forth in the AT&T Web Site Services Attachment to which this
Attachment is appended; provided, however, that in the case of Collocated Web
Services (as defined below), this Attachment shall expire no later than the date
on which the Lease (as defined below) expires or is terminated unless the same
has been replaced with another Lease, and provided further that it is understood
that AT&T shall have no obligation to renew, extend, keep in effect or replace
the Lease. Billing, with respect to each site, begins as of the date of physical
completion of server deployment and connection of the server to AT&T's network
("Implementation Date"), regardless of when or whether the customer's content
has been deployed. The Service Period begins on the Implementation Date.

2.  ABSENCE OF SUPPORT FOR AUTHORING TOOLS OR CONTENT

Customer is solely responsible for creating, updating and maintaining the
Content. AT&T will not provide support for use of content authoring tools or
other support in connection with the Content of Customer's Web Site.

3.  COLLOCATION SPACE

The services covered by this Attachment may involve the provision to Customer of
collated web services ("Collocated Web Services"), which include a AT&T- or
customer-owned server or other equipment that is to be collocated on AT&T's
premises and which may include use of third party software, hardware or other
third party services. The collocation space (the "Space"), which is in premises
that may be leased by AT&T, is described on Exhibit A. If Customer has elected
to do so, AT&T agrees to allow Customer to place certain equipment (the
"Equipment") as defined in Exhibit A, subject and subordinate to the terms and
provisions of the applicable lease or leases (the "Lease") between AT&T or its
affiliates and the landlord or landlords of the Space. The Equipment shall be
approved by AT&T prior to installation in the Space and shall not exceed the
standard dimensions identified in the Price Sheet. Customer hereby accepts the
Space in its as is condition and acknowledges that AT&T has no obligation to
make alterations, improvements, additions, decorations or changes within the
leased premises, Space or any part thereof. In connection with the provision of
the Space, AT&T shall provide to Customer the installation services, remote hand
services and other space services set forth on Exhibit A hereto. In the event of
any taking by eminent domain or damage by fire or other casualty to the leased
premises or the Space, Customer shall acquiesce and be bound by any action taken
by or agreement entered into between AT&T or its Affiliates and the landlord or
landlords with respect thereto.

4.  EQUIPMENT

All right, title and interest in all facilities and associated equipment
provided by either party shall at all times remain exclusively with such party.
Neither party shall create any liens or encumbrances with respect to such
facilities or equipment of the other party. Upon termination of Collocated Web
Services, Customer shall as promptly as possible and in any event within 60 days
of termination, release to AT&T all IP addresses provided by AT&T in connection
with the Collocated Web Services. Upon termination of this Attachment, Customer
shall leave the Space in as good condition (except for normal wear and tear) as
it was at the commencement of this Attachment, and shall remove its Equipment
and other property from the Space. Upon sixty (60) days' prior written notice
or, in the event of an emergency, with as much notice as may be feasible, AT&T
may require Customer at Customers expense to relocate the Equipment within the
leased premises, provided, however, that the site of relocation shall afford
comparable environmental conditions for the Equipment and comparable
accessibility to the Equipment. AT&T shall use reasonable efforts to maintain
the Collocated Web Services in accordance with applicable performance standards
therefor and to obtain and keep in effect all rights of way required to provide
the Collocated Web Services. AT&T shall have no responsibility for the hardware
maintenance and repair of, or any liability of any kind with respect to,
facilities and equipment which it does not furnish, and may assess Customer its
standard charge for any false call outs.

5.  INDEMNIFICATION

Without limitation of any other provision of the Agreement, Customer hereby
agrees to indemnify and hold harmless AT&T against any and all liabilities,
costs, expenses and claims relating to (i) Customers unlawful or improper use of
the Collocated Web Services, the Space or lease premises or the AT&T network,
(ii) Customers failure to comply with the terms and provisions of the Agreement,
including without limitation this Attachment, or (iii) property damage or
personal injury claims caused by Customer's acts or omissions or arising from
its operation of its Equipment or its use of the Space or the leased premises.

6.  ACCESS

As part of the covered services, Customer is granted access into AT&T's Space.
Customer shall at all times use care when working in and around AT&T's or other
Customer's equipment. AT&T, at its sole discretion, may grant Customer use of an
access card. In the event such a card is lost or stolen, Customer shall so
report to AT&T as soon as its loss is discovered. A lost or stolen access card
is replaceable upon payment of a replacement fee to AT&T.

7.  INTERNET SERVER AVAILABILITY

Under the AT&T Internet Server Availability Guarantee Program, AT&T Level 2
Dedicated Hosting Service Customers have the confidence that their Web Site will
be accessible by end users of the global Internet, subject to the program rules
and regulations set forth below.

If an AT&T-hosted Customer reports that an end user has been unable to access
their Web Site due to the unavailability of the AT&T content hosting production
web server, the Customer will be eligible to receive a credit against his/her
hosting Monthly Service Fee incurred during the affected month as specified
below, subject to the program rules and regulations set forth below.

Interruptions of 24 hours or less

   ------------------------------------ --------------
   Interruption Length                  Credit

   ------------------------------------ --------------
   less than 4 hours                    none
   ------------------------------------ --------------
   4 hours-7 hours 59 minutes           1/3 day
   ------------------------------------ --------------
   8 hours-11 hours 59 minutes          1/2 day
   ------------------------------------ --------------
   12 hours-15 hours 59 minutes         2/3 day
   ------------------------------------ --------------
   16 hours-24 hours                    one day
   ------------------------------------ --------------

Interruptions of over 24 hours -- Interruptions over 24 hours will be credited
1/6 day for each 4-hour period or periods or fraction thereof. No more than one
full day's credit will be allowed for any period of 24 hours.

Program rules and regulations:

1.  Claims may be made only by participating AT&T Hosting Service Customers.

2.  An outage under this limited guarantee is defined as unscheduled
    unavailability of an AT&T Hosting Server and does not include outages for
    scheduled periods of maintenance and upgrades. Notice of a scheduled outage
    may be given by posting of the notice on the applicable customer care
    website for the service.

3.  Web server availability only applies to content hosting servers used for
    hosting Customer's Web Site. It does not apply to servers used to provide
    services other than this Hosting Service, including without limitation
    transaction service servers or AT&T Internet mail servers.
<PAGE>   2

                                                     AT&T MA Reference No.______

                     AT&T Dedicated Hosting Service Level 2

4.  AT&T must be notified in writing of a claim by a Customer within 10 days of
    an occurrence of a possible Service outage. Customer claims must be sent to
    the e-mail address attsupport@cerf.net or as otherwise specified in the web
    site provided by AT&T for customer support. All submitted claims must
    include the date and time of the Service outage.

5.  All claims are subject to review and verification by AT&T.

6.  AT&T will be the sole party to verify and determine that an AT&T Hosting
    Server experienced an outage.

7.  A Customer may only receive credits equal to up to one (1) month's AT&T
    Hosting Service Fee during any calendar quarter. A Customer will not receive
    a credit for AT&T Web Hosting Nonrecurring Charges, other recurring monthly
    charges, or charges related to storage space and data download by users.

8.  AT&T reserves the right to change or modify the program rules and
    regulations or discontinue this limited guarantee program at any time
    without notice.

9.  Credits are exclusive of any applicable taxes charged to Customer of
    collected by AT&T.

This limited guarantee is subject to the applicable AT&T Hosting Service terms
and conditions set forth in the AT&T Web Site Services Attachment to which the
Attachment is appended.

<PAGE>   3

                                                     AT&T MA Reference No.______

                     AT&T Dedicated Hosting Service Level 2

                                    EXHIBIT A
                         REMOTE HANDS - TERMS OF SERVICE

1.  Remote Hands Services.

Customer has, pursuant to this Attachment, located certain equipment on AT&T
premises (the "Premises"), and may from time to time request that AT&T perform
certain basic services with respect to such equipment. Such services (herein
referred to as "Remote Hands Services") offer an opportunity for the Customer to
avoid dispatching field services personnel for certain basic on-site activity.

2.  Levels of Service.

Remote Hands Services include 3 levels of service, as follows:

Remote Hands Class A, provided at no additional cost, involves the most basic
activities of an on-site technician, performed with "eyes," "ears" and
"fingers," but without involvement of tools, equipment, physical labor, keyboard
or other data input. Examples of Class A service would include:

    -   pushing a button
    -   switching a toggle
    -   setting a dip switch
    -   power cycling (turning off and on) equipment
    -   securing cabling to connections
    -   observing, describing or reporting on indicator lights or display
        information on machines or consoles
    -   basic observation and reporting on local environment in AT&T premises

Remote Hands Class B, provided in accordance with the fee(s) set forth in the
Price Schedule, involves all the services of Class A, plus some configuration or
running of certain basic operations pursuant to real-time instructions of
Customer. This level of service does not involve opening or moving equipment or
any direct hardware or software interaction. Examples of Class B services would
include:

    -   running single, built-in diagnostic equipment
    -   typing commands on a keyboard console
    -   changing of pre-labeled tapes
    -   cable organization, ties or labeling
    -   modifying basic cable layout, such as Ethernet or FDDI connections
    -   re-labeling equipment

Remote Hands Class C, provided in accordance with the fee(s) set forth in the
Price Schedule, involves all the services of Class B, plus direct contact with
equipment configuration, including hardware and software interaction, provided
Customer provides accurate, understandable real-time instructions. Examples of
Class C services would include:

    -   installation of previously received equipment in existing track space
    -   replacing hardware components with spares of upgrades
    -   adding memory
    -   upgrading drive capacity by installation of new or additional disk
        drives

AT&T shall, in its own reasonable discretion, determine the appropriate Level of
Remote Hands to which each service request applies.

Remote Hands Services may be purchased on a per hour basis as needed, or on a
monthly basis under contract. Customer will be billed for services rendered
along with Customer's monthly service invoice.

3.  Request Procedure.

Customer shall initiate a Remote Hands Service request by following the
procedure set forth in the Configuration Review Form (CRF) provided to Customer,
as such procedure may be modified by notice to Customer by AT&T from time to
time. Each service request requires a separate initiation by the Customer, by
fax, e-mail or other writing if possible. Each request from a Customer which has
not elected a contract option shall require an original signed request from a
previously authorized Customer representative. In cases of emergency, a signed
facsimile transmission service request followed by a signed original is
acceptable. AT&T's technicians will use reasonable efforts to respond to a
Customer request for Remote Hands Service by telephone or electronic
communication within 30 minutes of receipt of the initial Customer's request.
AT&T's technician will assign a Trouble Ticket and will use reasonable efforts
to commence the rendering of the service within the time window specified below
from the point of assignment of the Trouble Ticket.

    ----------------------- --------------------------
         AT&T PREMISE          SERVICE INITIATION
                                     WITHIN:
    ----------------------- --------------------------
    San Diego, 9850         1 hr.
    Scranton Road
    ----------------------- --------------------------
    New York, 67 Broad      1 hr.
    Street
    ----------------------- --------------------------

4.  No Warranty/Limitation on Damages.

Customer acknowledges that AT&T will provide Remote Hands Services under
Customer's specific direction. AT&T DOES NOT OFFER OR PROVIDE (AND HEREBY
DISCLAIMS) ANY WARRANTY WITH RESPECT TO REMOTE HANDS SERVICES. NOTWITHSTANDING
ANYTHING CONTAINED IN THE AGREEMENT TO THE CONTRARY, THE REMOTE HANDS SERVICES
ARE PROVIDED ON AN "AS IS" BASIS. AT&T SHALL NOT BE LIABLE IN ANY WAY WHATSOEVER
FOR ANY DIRECT OR INDIRECT LOSS, COST OR DAMAGE CUSTOMER MAY INCUR IN CONNECTION
WITH AT&T PROVIDING OR FAILING TO PROVIDE THE REMOTE HANDS SERVICES TO CUSTOMER.

5.  Indemnity.

Customer will at all times defend, indemnify and hold harmless AT&T from and
against any and all damages, liabilities, losses, penalties, interest and other
expenses (including, without limitation, reasonable attorney's fees), whether or
not arising out of or relating to any third party claims, and regardless of the
form of action, whether in contract, tort, strict liability or otherwise,
concerning AT&T's provision of the Remote Hands Services to Customer.




<PAGE>   4
                                                     AT&T MA Reference No.______

                     AT&T Dedicated Hosting Service Level 2

                                    EXHIBIT B
                         SERVICE COMPONENTS AND PRICING

    Exhibit B specifies the AT&T Dedicated Hosting Service hardware and hardware
components, along with one-time service set-up fees, recurring service fees, and
standard charges for other services which may be requested from time to time
under the terms of this Attachment.

SECTION 1: Standard Service Fees

Standard fees include recurring and non-recurring charges. Non-recurring charges
are for site set-up, which includes hardware and software installation,
configuration and testing, and Remote Hands Service, which may be requested by
Customer as needed during the term of this Attachment.

Table 1. Non-Recurring Charges.

------------------------------------------ ------------
Basic Site Registration/Set-up Charge(1)   $3,000

------------------------------------------ ------------
On-demand Remote Hands Service(2)
  Class A                                  No Charge
  Class B                                  $190/hr
  Class C                                  $250/hr
------------------------------------------ ------------
Table 2.  Recurring Charges (per
month).(3)(4)(5)
------------------------------------------ ------------
Bandwidth(6)
  0.5 Mbps                                 [***]
  1 Mbps additional bandwidth up to a      [***]
  total of 3.5 Mbps
------------------------------------------ ------------
Maintenance, Monitoring, Power and         [***]
Standard Rack Space (per server)
--------------------- --------- ---------- ------------
Contracted Remote     Hours     Class B    Class C
Hands Service         per
                      month
                      --------- ---------- ------------
                      [***]     [***]      [***]

                      [***]     [***]      [***]

                      [***]     [***]      [***]

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

SECTION 2: Quoted Service Fees

Service fees are quoted for each contract for the following components:
Lease:  Rental of equipment and software provided by AT&T.
Rack Space:  Non-standard rack space.
Additional Installation and Set-up fees: Installation and set-up of more than
one server system and of software.(7)

Bandwidth Options: Bandwidth values other than those described in SECTION 1:
Standard Service Fees, rate shaping and bursting options.

Detailed information about quoted charges, including descriptions and itemized
pricing, is specified below in SECTION 3: Services and Fees.



[***] Confidential treatment has been requested for the bracketed portion. The
confidential redacted portion has been omitted and filed separately with the
Securities and Exchange Commission.

<PAGE>   5

                                                     AT&T MA Reference No.______

                     AT&T Dedicated Hosting Service Level 2

SECTION 3:  Services and Fees

Table 3. Detailed Charges for Hardware. Detailed description of hardware to be
provided with charges for installation and monthly rental (if applicable).

-------------------------------------------------------
Description:   [***];
-------------------------------------------------------
[***];
[***]
[***]
[***]
[***]
[***]
-------------------------------------------------------
                    Amount     Comments/Additional
                               Information
---------------- ------------- ------------------------
Installation/Set-up    [***]   [***]

Monthly Fee            [***]
---------------- ------------- ------------------------

Table 4. Detailed Charges for Software. Detailed description of software to be
provided with charges for installation and monthly rental (if applicable).

-------------------------------------------------------
Description:  N/A
-------------------------------------------------------
                    Amount     Comments/Additional
                               Information
---------------- ------------- ------------------------
Installation/Set-up [***]      N/A

Monthly Fee         [***]      N/A
---------------- ------------- ------------------------

Table 5. Detailed Charges for Additional Features and Services. Detailed
description of any additional features or services with charges for installation
and any monthly charge.

-------------------------------------------------------
Description:  N/A
-------------------------------------------------------
                    Amount     Comments/Additional
                               Information
---------------- ------------- ------------------------
Installation/Set-up [***]      N/A

Monthly Fee         [***]      N/A
---------------- ------------- ------------------------

SECTION 4:  Summary of Charges

This detailed itemization will constitute the Customer ordered and agreed to
equipment, software components and configurations.

AT&T Dedicated Hosting Service Level 2 includes four key elements plus an
installation fee. These elements are combined as required to build the
Customer's customized server configurations:

B:  Ethernet connection unit to a cluster of maximum three (3) servers.

L:  Lease of certified Sun or Compaq computers (optional) plus software.

M:  OS maintenance, performance monitoring, per server.

R:  Rack space (required for servers exceeding the standard four (4) inch
    height).

Table 6. Service Elements Ordered. Summary of total charges by Element, plus
Total Installation charge.

---------- --------- ----------------------------------
 Element    Amount   Description/Comments and
                     Additional Information
---------- --------- ----------------------------------
B          $ [***]   [***].
---------- --------- ----------------------------------
L            [***]
---------- --------- ----------------------------------
M          $ [***]   [***]
---------- --------- ----------------------------------
R          $ [***]   [***]
---------- --------- ----------------------------------
Install    $ [***]   [***].
---------- --------- ----------------------------------

-------------------------------------------------------
TOTAL INSTALLATION FEE       [***]      Customer is
                                        responsible
                                        for
                                        installation
                                        and content
                                        management.

---------------------------- ---------- ---------------
TOTAL MONTHLY SERVICE FEE    [***]
---------------------------- ---------- ---------------

Prices shown are for U.S. only and are subject to change on sixty days notice.
Every effort has been made to ensure that the information is complete and
accurate; however, AT&T is not responsible for typographic errors or omissions.
As prices change, the most current prices will be reflected in on-line HELP.
AT&T and AT&T and the Globe Design are registered trademarks and service marks
of AT&T Corp. Any other marks may be proprietary marks of one or more third
parties. (C) 1998 AT&T. All Rights Reserved. Printed in the U.S.A.

--------
(1) Includes vanity domain name registration (2 years) and set-up, installation
and testing of hardware and standard software for a single server system.

(2) Refer to Exhibit A for a Remote Hands Services.

(3) Minimum term commitment of 1 year. Except as specified below, in the event
of early cancellation of service, the Customer is responsible for payment of the
remaining portion of the term commitment in full and is not eligible for a
refund of any fees. In the event of a notice of price increase of the monthly
Base Rate of [***] or more, the Customer may cancel Service with no cancellation
penalty by providing written notice of cancellation within 60 days following the
date of notice of such price increase. In the event of a notice of price
increase of any of the software options noted above of [***] or more, the
Customer may cancel the affected optional feature with no cancellation penalty
by providing written notice of cancellation of such feature with no cancellation
penalty by providing written notice of cancellation of such feature within 60
days following the date of notice of such price increase.

(4) Billed one month in advance, pro-ratable for partial months. Registration
and monthly charges accrue upon physical completion of server deployment and
connection of the server to AT&T's network regardless of when or whether the
Customer" content has been deployed. Customer is responsible for content
installation and management.

(5) The AT&T Dedicated Hosting Service Level 2 does not include inbound e-mail
or Internet access capabilities, which are the responsibility of the Customer to
obtain.

(6) Standard bandwidth must be ordered with no more than three (3) 1 Mbps
increments for each 0.5 Mbps. Charges for non-standard bandwidth and bursting,
if applicable, will be specified in Section 3 of this Exhibit B.

(7) See Note 1 above. Additional charges apply when more than one server is
ordered, and for any software which AT&T deems not to be a part of its standard
configuration.



[***] Confidential treatment has been requested for the bracketed portion. The
confidential redacted portion has been omitted and filed separately with the
Securities and Exchange Commission.

<PAGE>   6
                                                     AT&T MA Reference No.______

                     AT&T Dedicated Hosting Service Level 2



             ADDENDUM TO DEDICATED HOSTING SERVICE LEVEL 2 AGREEMENT

This Addendum, effective as of the date of the last signature herein to the AT&T
Dedicated Hosting Service Level 2 Agreement ("Agreement") between Artist Direct
("Customer") and AT&T Corporation ("Provider") dated on or about April 16, 1999,
is hereby incorporated with reference to the following:

                                   WITNESSETH:

Whereas, Customer agrees to amend the define certain obligations of the parties
hereto pursuant to the Agreements.

Whereas, Provider agrees to amend and define certain obligations of the parties
hereto pursuant to the Agreements.

Whereas, Customer and Provider agree to amend certain obligations and
incorporate this Amendment as expressed and set forth.

NOW THEREFORE, in consideration of the mutual promises and covenants contained
herein the parties agree as follows:

The Agreement is amended as follows:

1.  Add into Section (4) under EQUIPMENT: the language "False Call Out services
    are determined when contracted client asks AT&T to provide services and then
    realizes that the request for services were not required at all. Therefore
    AT&T will bill contracted client for False Call Out services as Remote Hands
    Class B services. The prices for Remote Hands Class B services are noted in
    Exhibit B "Service Components and Pricing" of the AT&T Dedicated Hosting
    Service Level 2 agreement."

2.  Delete from Section (5) under INDEMNIFICATION (ii): the language "Customers
    failure to comply with the terms and provisions of the Agreement, including
    without limitation this Attachment, or" and insert in its place, "Customer's
    failure to comply with the material terms and provisions of the Agreement,
    including without limitation this Attachment."

3.  Add into Section (5) under INDEMNIFICATION: the language "In the event that
    the Service fails to perform as otherwise warranted hereunder, solely as a
    result of the calendar change from year 1999 to the 2000, or solely as a
    result of a calculation made through use of such service which involve dates
    after December 31, 1999, and not as a result of use of the Service with
    services, products, data or systems that themselves fail to function
    properly because of such date change or calculation, then AT&T will take
    reasonable steps to correct any such failure of the Service, at no
    additional charge to Customer, as Customer's exclusive remedy."

4.  Delete from Section (6) under ACCESS the fifth sentence: the language "A
    lost or stolen access card is replaceable upon payment of a replacement fee
    to AT&T." and insert in its place, "A lost or stolen access card is
    replaceable upon payment of a reasonable replacement fee to AT&T.".

5.  Add into Section (7) under INTERNET SERVER AVAILABILITY: the language
    "AT&T/CERFnet Dedicated Hosting Services' national availability percentage
    is 99.45 percent, which equates to 4 hours of downtime per month. This
    includes scheduled downtime.

    The following is AT&T/CERFnet's standard Service Level Agreement based on
server availability:

    -   All measurements are based on a thirty (30) day measurement period.

    -   Server availability of 99.45%, which equates to four (4) hours per month
        of down-time. This downtime will include scheduled and unscheduled
        maintenance windows.

    -   Mean time to respond - 15 minutes. This means any customer calls that
        are not answered directly will receive a call back within 15 minutes of
        the time their message is recorded.

    -   Mean time to restore - 2 hours. This mean that any server outage will be
        resolved and the service will be brought back on-line within two hours.

    -   Mean time to repair - 4 hours. This means that the cause of the server
        outage will be corrected within 4 hours.

    Scheduled Maintenance and Notification Procedure.
    AT&T/CERFnet will use commercially reasonable efforts to provide advance
    notice to Customer."


                                AT&T PROPRIETARY

<PAGE>   7

                                                     AT&T MA Reference No.______

                     AT&T Dedicated Hosting Service Level 2

6.  Delete from Footnote (3) in the third sentence: the language "In the event
    of a notice of price increase of the Monthly Base Rate of 10% or more, the
    Customer may cancel Service with no cancellation penalty by providing
    written notice of cancellation within 60 days following the date of notice
    of such price increase."

All other Terms and Conditions pursuant to the Agreement shall remain in full
force and effect.

The parties have caused this Amendment to be executed by duly authorized
representatives as indicated hereinbelow.

        AT&T CORPORATION                  ARTIST DIRECT

Name:                                     Name:   Marc Geiger
    -------------------------------           ----------------------------------
Title:                                    Title:  Co. CEO
     ------------------------------            ---------------------------------
Signature:                                Signature: /s/ MARC GEIGER
         --------------------------                -----------------------------
                                                    Marc Geiger
Date:                                     Date:   4/17/99
    -------------------------------           ----------------------------------


Addendum to AT&T Dedicated Hosting Serviced Level 2 Agreement, Dated April 15,
1999