So You Want in on the Music Biz? Fred Wilson Has 4 Things to Tell You



Not only is Union Square Ventures partner Fred Wilson the godfather of the New York startup scene, he also loves music. So who better than this self-proclaimed music nut to talk about the future of music and technology, and how companies straddling both have a shot at making money.


At the Billboard FutureSound conference in San Francisco this week, Wilson laid out four guiding principals for would-be music moguls. All you Russell Simmons wannabes, here you go.


1. It’s more expensive than you think, and it takes longer than you want.


Unlike a typical software startup that can get up and running with $500,000, music startups often need at least $5 million and up to $20 million just to get started, says Wilson. Much of that money goes towards licensing music content from the copyright holder, which is usually a record label. “The startup costs for a legal and legitimate music service are extremely high relative to any other sector,” he says. Translation: VCs have plenty of other cheap sectors to go hunting for promising startups, so funding for music startups is hard to come by.


Union Square Ventures‘ two music plays are group listening service Turntable.fm and social MP3 sharing site SoundCloud, both of which received sizable rounds from the firm. Turntable.fm has raised $7 million from Union Square and others, and SoundCloud banked $10 million in its Wilson-led second round of funding.


Unlike many web-based startups (mobile and otherwise), which latch on to massive distribution platforms offered by Facebook, Google and Apple, music streaming or discovery services can’t go global on day one because of copyright protections and country-specific licensing contracts.


Turntable.fm learned that lesson the hard way. When the service launched in 2011 it blew up thanks to its slick design and mobile-friendly approach. But the startup quickly learned that it was illegally offering music to overseas listeners. It immediately shut off service to international customers, and two-thirds of its users disappeared. The company is now hammering agreements with individual countries and record labels to stream music legally, but it’s going to be a long and tedious process, says Wilson.


2. No matter how many users you have, massive valuations are fleeting if you can’t make money – even if you are Spotify and Pandora.


Spotify recently banked $100 million from Goldman Sachs, valuing the company at $3 billion. Even though Pandora has been trading down 46 percent from its 2011 debut, the company still has a $1.21 billion market cap. But those valuations will disappear if neither company can stem their operating losses, and fast, says Wilson.


A PrivCo report shows that while Spotify earned $244 million in revenue during 2011, the company lost $60 million in the same period. Even though a leaked report says that Spotify’s revenue could double in 2012, if the company losses keep climbing, Wilson says Spotify’s value won’t stay in the billions forever. “Spotify is probably not worth $3 billion,” he says. “It might be worth something, someday to someone, but if they still can’t figure how to make money, they’ll lose.”


Pandora faces the same struggle as Spotify, trying to get users, not advertisers, to pay for its service. For the second quarter of its 2013 fiscal year, the company booked $101.3 million in revenue, but lost $5.4 million. Though its advertising revenue remains strong at $89.4 million, it is having a hard time converting freeloading listeners into paid subscribers, despite its own ad attempts. “Pandora will not be worth billions for long if they are losing money,” Wilson says.


3. That said, Pandora has the right idea. Advertising dollars will move increasingly to internet radio, and artists will start to make money from their music.


FM radio advertising is a $17 billion market, and Wilson believes that as Internet radio services like Pandora, Songza, and Rdio take the place of traditional broadcast, those ad dollars will move online. That’s good for online radio streaming startups, but even better for the artists whose music is played over these apps and websites.


When a song is played on the radio, the artists gets a royalty. But to play a song over Rdio or Pandora, those companies must pay licensing costs and higher royalties, which go right back to the artists. Pandora has said that it pays out $1 million to Adele, Coldplay, and others.


Wilson is optimistic that as more music enthusiasts ditch radios for apps, more money will find its way to artists. That might be the case for radio apps now, but that could easily change as Pandora has been looking for ways to reduce its royalty costs. The company recently sued the American Society for Composers, Authors and Publishers, a major royalty collection agency, seeking lower licensing fees. Pandora is also lobbying Congress to pass the Internet Radio Fairness Act to bring down it’s licensing costs, a piece of legislation that many artists oppose.


4. Selling virtual goods might be a better business than selling music.


Wilson would be remiss to not plug his own investment in Turntable.fm during his keynote. If you’re not familiar with the service, users create themed music rooms, like “I Love the 80s” or “Indiescribable,” which they join as a virtual DJ. Others join the room as listeners, and influence which songs are played based on a thumbs-up/thumbs-down voting system. Too many down-votes will force the song to skip to a new one on the playlist, but up-votes earn you “DJ points,” credits you can use to unlock new avatars.


Turntable.fm doesn’t charge its users for a subscription and doesn’t serve ads. Though it’s not bringing in revenue right now, there is talk of charging for DJ points, so anyone can get a little bit of cred without getting up on the virtual DJ platform.


While that will surely vex some current Turntable.fm users, charging for virtual goods might be the next big revenue-earning tool for music businesses. “Ads can carry a lot of the load, but not all,” says Wilson. “Turntable.fm’s virtual goods model could work well as a new revenue stream for other music businesses.”


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Scott Dadich Named Top Editor at Wired
















LOS ANGELES (TheWrap.com) – Scott Dadich has been named editor-in-chief of Wired magazine, it was announced Friday by Condé Nast editorial director Tom Wallace.


The appointment marks a homecoming for Dadich, who served as Wired’s creative director from 2006 to 2010. He replaces Chris Anderson as the publication’s top editor.













Since 2010, Dadich has served as vice president, editorial platforms and design at Conde Nast. In this role, he oversaw the creative efforts to bring Condé Nast’s storied brand portfolio to emerging digital channels.


“Scott has been at the forefront of the company’s digital innovation for the past three years, developing the design for a digital magazine that has become an industry standard,” Wallace said. “His return to Wired, where he served as creative director and won three National Magazine Awards for Design, will ensure that it continues its pace-setting growth.”


While Dadich was creative director at Wired, the magazine received three consecutive National Magazine Awards for Design. He is the only creative director ever to win both the National Magazine Award for Design and the Society of Publication Designers Magazine of the Year Award for three consecutive years (2008-2010).


“I’m excited to return to Wired, which has had such a tremendous impact on my life and my career,” Dadich said. “I’m honored to have the chance to build on the legacy of innovation that Louis and Jane started some 20 years ago. And I am grateful to my friend and colleague Chris and the incredible Wired staff. I look forward to finding new opportunities to delight and surprise the Wired community, both with the stories we tell and in the ways in which we tell them.”


Prior to Wired, he was the creative director of Texas Monthly, which was nominated for 14 National Magazine Awards during his tenure and won for General Excellence in 2003.


Celebrity News Headlines – Yahoo! News



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N.F.L. Paid Millions Over Brain Injuries, Article Says





Three retired N.F.L. players received at least $2 million in disability payments as a result of brain trauma injuries from their playing days, according to an article by ESPN and the PBS series “Frontline.”




The payments were made in the 1990s and early 2000s by the Bell/Rozelle N.F.L. Player Retirement Plan, a committee comprising representatives of the owners, players and the N.F.L. commissioner.


The N.F.L. is being sued by several thousand retired players who accuse the league of concealing a link between hits to the head and brain injuries. The league denies the accusation and has said it did not mislead its players.


The article, however, cites a letter written in 2000 from the director of the retirement plan who stated that Mike Webster, who retired in 1990, had a disability that was “the result of head injuries he suffered as a football player with the Pittsburgh Steelers and the Kansas City Chiefs.”


Webster died in 2002. The article cites similar payments to Gerry Sullivan, a lineman for the Browns, and a third, unnamed player.


The article provides more details than were known about Webster’s case; his fight for disability benefits was known. The retired players say that “the N.F.L.’s own physician independently examined Webster and concluded that Webster was mentally ‘completely and totally disabled as of the date of his retirement and was certainly disabled when he stopped playing football sometime in 1990.’ ”


However, Greg Aiello, a spokesman for the N.F.L., said that the ESPN report “underscores that we have had a system in place with the union for many years to address player injury claims on a case-by-case basis.” The disability plan, he said, was “collectively bargained with the players.”


“All decisions concerning player injury claims are made by the disability plan’s board, not by the N.F.L. or by the Players Association,” Aiello said.


The board has seven members: three owner representatives, three player representatives and one nonvoting representative of the commissioner.


The disclosures in the article came a day after Commissioner Roger Goodell spoke at the Harvard School of Public Health, where he trumpeted the league’s efforts to increase the safety of its players and proclaimed that “medical decisions override everything else.”


Jeffrey Standen, a law professor at Willamette University in Oregon, said the details about Webster’s disability payments did not amount to a smoking gun. The plan’s determination that Webster sustained head injuries is not the same as the N.F.L. making that decision.


“The problem is the N.F.L. didn’t make the admission; it was the board,” Standen said. “They’re not the same body. As a legal matter, the fact that they paid Webster is not going to matter much in legal terms. But it’s evidence to throw in front of a jury.”


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DealBook: As Labor Talks Collapse, Hostess Turns Out Lights

What might be the last Twinkie in America — at least for a while — rolled off a factory line Friday morning. It was just like the millions that had come before it, golden, cream-filled empty calories, a monument to classic American junk food.

But it is likely to be the last under the current management. After not one but two bankruptcies, Hostess Brands, the beleaguered purveyor of Twinkies, Ho Hos, Sno Balls and Wonder bread, announced plans to wind down operations and sell off its brands.

Since filing for Chapter 11 bankruptcy protection in January, Hostess has been trying to renegotiate its labor contracts in a bid to cut costs. But the talks fell apart, and last week one union went on strike.

The so-called liquidation will probably spell the end of Hostess, an 82-year-old company that has endured wars, countless diet fads and even an earlier Chapter 11 filing. Although the company could theoretically negotiate a last-minute deal with the union, Hostess is moving to shut factories and lay off a large majority of its 18,500 employees.

But Twinkies and the other well-known brands could eventually find new life under a different owner. As part of the process, Hostess is looking to auction off its assets, and suitors could find value in the portfolio.

“The potential loss of iconic brands is difficult,” said the company’s chief executive, Gregory F. Rayburn. “But it’s overshadowed by the 18,500 families that are out of work.”

The company’s current problems stem, in part, from the legacy of its past.

An amalgam of brands and businesses, the company has evolved over the years through acquisitions. In the 1960s and 1970s, the company, then called Interstate, bought more than a dozen regional bakeries scattered across the country. A couple of decades later, it paid $330 million for the Continental Baking Company, picking up a portfolio of brands like Wonder and Hostess.

As the national appetite for junk food waned, the company fell on hard times, struggling against rising labor and commodity costs. In 2004, it filed for bankruptcy for the first time.

Five years later, the company emerged from Chapter 11 as Hostess Brands, so named after its most prominent division. With America’s new health-conscious attitude, it sought to reshape the business to changing times, introducing new products like 100-calorie Twinkie Bites.

But the new private equity backers loaded the company with debt, making it difficult to invest in new equipment. Earlier this year, Hostess had more than $860 million of debt.

The labor costs, too, proved insurmountable, a situation that has been complicated by years of deal-making. The bulk of the work force belongs to 12 unions, including the International Brotherhood of Teamsters and the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union.

The combination of debt and labor costs has hurt profits. The company posted revenue of $2.5 billion in the fiscal year 2011, the last available data. But it reported a net loss of $341 million.

With profits eroding, the company filed for Chapter 11 in January. It originally hoped to reorganize its finances, seeking lower labor costs, including an immediate 8 percent pay cut.

The negotiations have been contentious.

The Teamsters, which has 6,700 members at Hostess, said it played an instrumental role in ousting Hostess’s previous chief executive, Brian J. Driscoll, this year after the board tripled his compensation to $2.55 million. The union also hired a financial consultant, Harry J. Wilson, who had worked on the General Motors restructuring.

While highly critical of management missteps, the Teamsters agreed in September to major concessions, including cuts in wages and company contributions to health care. As part of the deal, the union was to receive a 25 percent share of the company’s stock and a $100 million claim in bankruptcy.

“The objective was to preserve jobs,” said Ken Hall, the Teamsters’ general secretary-treasurer. “When you have a company that’s in the financial situation that Hostess is, it’s just not possible to maintain everything you have.”

But Hostess reached an impasse with the bakery union. Frank Hurt, the union’s president, seemed to lose patience with Hostess’s management, upset that it was in bankruptcy for the second time despite $100 million in labor concessions. He saw little promise that management would turn things around.

“Our members decided they were not going to take any more abuse from a company they have given so much to for so many years,” said Mr. Hurt. “They decided that they were not going to agree to another round of outrageous wage and benefit cuts and give up their pension only to see yet another management team fail and Wall Street vulture capitalists and ‘restructuring specialists’ walk away with untold millions of dollars.”

About a month ago, Mr. Rayburn said, the bakers union stopped returning the company’s phone calls altogether. For its part, the bakery union said the company had taken an overly aggressive approach. David Durkee, the union’s secretary-treasurer, said Hostess had given an ultimatum. “They said, ‘If you do not ratify this, we are going to liquidate based on your vote.’ ”

With the company standing firm, the bakery union struck last week, affecting nearly two-thirds of the company’s factories across the country. The Teamsters drivers honored the picket line, further shutting down the operations. The company gave union members until 5 p.m. on Thursday to return to work.

Mr. Rayburn said the financial strain of the strike was too much for the company, which had already reached the limits of its bankruptcy financing. Over the last week, Hostess lost tens of millions of dollars as many customers’ orders went unfilled. And its lenders would not open their wallets one more time.

By Thursday morning, Hostess’s executives were ensconced in the company’s headquarters in Irving, Tex., still hoping that enough employees would return to work to resume production. A small number of workers had already crossed the picket lines that had sprung up at most of the baker’s factories, but more than 10 plants remained well below their necessary capacity.

Mr. Rayburn’s deadline of 5 p.m. passed without either side backing down. Soon after, executives asked the company’s legal advisers to finish the court motions that would begin the liquidation. Papers had been drawn up well before that afternoon.

Around 7 p.m., Mr. Rayburn had his final discussions with the company’s board and his senior managers and made the call to begin winding down.

“We were trying to focus on where people were having success, but I had to make a call,” Mr. Rayburn said.

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Investigators find major flaws in L.A. Fire Department data









A long-awaited review of the Los Angeles Fire Department found the agency relied on inaccurate data, which provided the public with an erroneous portrait of the department’s performance that was used to make critical staffing decisions.

“All prior reporting data should not be relied upon until they are properly recalculated and validated,” the task force appointed by Fire Chief Brian Cummings concluded.

While the Fire Department has acknowledged some mistakes in its data, the 32-page report found more widespread problems and delves more deeply into a series of factors that contributed to the faulty figures. Among other things, the experts found systemic flaws in a 30-year-old computerized dispatch network and a lack of adequate training for firefighters assigned to complex data analysis.





INTERACTIVE: Check response times in your L.A. neighborhood


The probe was launched after department officials acknowledged earlier this year that LAFD performance reports released to City Hall leaders and the public made it appear rescuers were getting to emergencies faster than they actually were.

The task force report, scheduled to be discussed Tuesday by the Fire Commission, said the department has corrected the computer-system flaws that led to the inaccurate figures.

“The No. 1 goal was to restore confidence in the Fire Department's statistics in the eyes of the public and city leaders,” said Fire Commissioner Alan Skobin, who helped oversee the report. “We now have the ability to identify and pull out accurate data.”


Still, the report paints a picture of a department woefully behind in using technology to help speed up emergency responses and improve efficiency by analyzing thousands of dispatch records that churn through the department's computer system each day.

The report recommends installing GPS devices on fire units so dispatchers know their location at all times, an upgrade that has been discussed since at least 2009. That could ensure that the closest rescuers are sent to those in need.

The task force also said upgrades or replacement of the aging computer system at the heart of dispatch operations may be needed, as well as hiring professional analysts to scrutinize the data.

Some money has been set aside to help pay for the GPS upgrade and the dispatch system changes. But whether all the changes raised in the report could be funded is unclear, given that the LAFD already is projected to run a $5.2-million deficit in its current budget.

The report’s findings in some ways parallel recent probes by City Controller Wendy Greuel and Jeffrey Godown, an expert brought in by Mayor Antonio Villaraigosa as questions grew about the department’s performance figures.

The task force includes members of the chief’s own staff, as well as experts from USC, the RAND Corp. and the Los Angeles Police Department’s COMPSTAT unit, which is recognized for its crime data analysis.

Indeed, the Fire Department hopes to roll out its own version of the LAPD’s data-reporting system, called FIRESTATLA. It would allow managers, elected officials and the public access to regularly updated reports on detailed response times and other statistics by neighborhood, Skobin said. The new system is estimated to cost up to $500,000, he said.

In March, fire officials acknowledged that they had changed the way in which they evaluated response times without telling the public or city officials. Their method made it appear that crews surpassed national standards more frequently than they actually did.

Those faulty statistics were used by Cummings and other top fire officials to push for a new cost-cutting deployment plan that shut down firetrucks and ambulances at more than one-fifth of the city's 106 firehouses. Cummings initially defended the department’s data when questions arose about its accuracy.

Later, he acknowledged that yet another set of numbers used in reports on the proposed deployment changes were projections, not actual response times. Some council members said they might not have voted for the budget cuts had they been aware that projections were used.

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EBay's P2P Same-Day Delivery App Launches in NYC



Just in time for Black Friday, eBay is offering New Yorkers a new way to sit out the madness. Instead of waiting in line, shoppers can use the eBay Now same-day delivery app to send eBay couriers to major chain stores to buy for them.


After being beta-tested in San Francisco in recent months, eBay Now is launching today for anyone with an iPhone south of 125th Street in Manhattan or in Brooklyn’s western reaches. Unlike similar offerings being tested by Walmart and Amazon, which rely on their own inventory, eBay Now works more like a peer-to-peer network, connecting shoppers with participating stores nearby while eBay acts as a go-between. And the stores aren’t obscure. Macy’s, Toys”R”Us, Target, and Best Buy are among what eBay says are hundreds of retailers taking part.


Also, unlike Walmart’s and Amazon’s offerings, eBay doesn’t require placing an order before a certain cutoff time. Its network of couriers, which it calls “valets,” are stationed throughout the city, with more personnel clustered around areas with higher concentrations of customers and stores. When a shopper places an order through the location-aware app, it goes out to the valet in the best place to fulfill the order the most quickly. The company promises to make most deliveries in an hour or so, though for now eBay valets have to wait in line at the checkout counter like everyone else. The minimum order is $25, shoppers can only order from one store per delivery, and there’s a $5 delivery fee.


The service fits eBay’s effort to re-brand itself as more than an auction site. The company wants people to think of eBay as a place to get anything and everything. And as the distinctions between offline and online retail fall away, eBay also wants shoppers to feel like they can get their stuff whenever, wherever, and however they want.


Short of opening their own stores, the network of retailers participating in eBay Now give eBay a surrogate physical footprint, and a way to approximate the immediacy of walking into an actual store. In a way, eBay Now doesn’t stray that far from the company’s roots: Just think of the stores as typical eBay sellers, except with more inventory.


Launching eBay Now in New York also invites the inevitable comparisons to famous dotcom-bubble failure Kozmo.com, which used bike messengers to bring New Yorkers just about anything in about an hour. Unlike Kozmo, however, same-day delivery isn’t eBay’s core business. Kozmo also didn’t charge a delivery fee or require a minimum order amount. (Also, eBay’s couriers use their own cars.)


As a company that survived the first dotcom bust and sees tens of billions of dollars in transactions move across its network each year, eBay has no doubt done the math to figure out how same-day fits into their business plans. EBay Now isn’t so much a reinvention as a small-scale investment in new infrastructure — infrastructure eBay needs to have in place as the anytime, anywhere, any way model of retail catalyzed by smartphones evolves from novelty to norm.


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Psy, Drake, Gotye join American Music Awards birthday bash
















LOS ANGELES (Reuters) – The American Music Awards rings in its 40th year on Sunday, with top nominees like Rihanna and Nicki Minaj battling for the top trophies and Stevie Wonder leading a tribute to the show’s late founder, Dick Clark.


Variety is the key to this year’s three-hour ceremony from Los Angeles, with performers including Canadian pop star Justin Bieber, 1990s ska-punk band No Doubt, alt-rockers Linkin Park, country-pop darling Taylor Swift, Korean Internet sensation Psy and British-Irish boyband The Wanted.













“The AMAs reflects pop culture, which is all forms of music, all genres, pop, rock, country, hip hop, alternative … all these things that normally don’t together. It’s our job to make it flow,” producer Larry Klein told Reuters.


R&B star Rihanna, 24, and Minaj, 29, tied for the most nominations this year, with four apiece, and will battle each other in the hotly contested female pop-rock category.


Rihanna will also face stiff competition for the top award of the night, the artist of the year accolade, where she will compete with Bieber, Katy Perry, Maroon 5 and Drake.


The new artist category is expected to be a tight race between rapper J. Cole, indie-pop band fun., Australian singer Gotye, British boyband One Direction and Canadian popstar Carly Rae Jepsen, who will also be performing on Sunday. The ceremony will be shown live on ABC Television.


Unlike the Grammy Awards, which are decided on by music producers, songwriters and others working in the industry, the American Music Awards are determined by fans.


“It’s the public who watches, who decides, who votes. This is an awards show where the public decides the nominees and winners, so our shows are more about pop culture,” Klein said.


This year sees a new category for the growing electronic dance music market, which Klein said he couldn’t ignore. DJs David Guetta, Skrillex and Calvin Harris will compete for the trophy.


REMEMBERING DICK CLARK


This is the first time Klein will be running the show without the input of influential music and TV producer Dick Clark, who died in April at the age of 82. Clark created the American Music Awards in 1973 as an alternative to the Grammys, and Klein said his absence felt bizarre.


“Last year, he loved the show, he was very happy. He loved LMFAO when they closed the show, it was all a fun party of music, dance music, Dick loved it,” Klein said.


Clark, who also hosted “American Bandstand” and “New Year’s Rockin’ Eve,” will be remembered on Sunday in a tribute led by Wonder and “American Idol” host Ryan Seacrest.


“I wanted to make it classy, elegant and meaningful, with something that truly summoned the relationship that Dick had with so many people,” said Klein, who has been involved in the show since its inception.


Klein said the show will look back on its 40-year history, showcasing some of its most memorable moments. Klein’s personal picks included performances from late singer Michael Jackson, funk-pop star Prince, and Jay-Z and Alicia Keys’ rendition in 2009 of “Empire State of Mind.”


“I was very close to Michael Jackson, so every time Michael was on the show, it always made me happy. The Prince number we did was outrageous, Jay-Z and Alicia Keys…it really was epic, it was just extraordinary,” Klein said.


With more than fifteen individual performances, or “mini-shows” scheduled for Sunday, Klein said audiences can expect surprises.


“Live TV is the best, it’s unpredictable. Without a doubt there will be some unpredictable moments, I promise you,” the producer said.


(Reporting By Piya Sinha-Roy, editing by Jill Serjeant)


Music News Headlines – Yahoo! News



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I Was Misinformed: The Time She Tried Viagra





I have noticed, in the bragging-rights department, that “he doesn’t need Viagra” has become the female equivalent of the male “and, I swear, she’s a real blonde.” Personally, I do not care a bit. To me, anything that keeps you happy and in the game is a good thing.




But then, I am proud to say, I was among the early, and from what I gather, rare female users.


It happened when the drug was introduced around 1998. I was 50, but after chemotherapy for breast cancer — and later, advanced ovarian cancer — I was, hormonally speaking, pretty much running on fumes. Whether this had diminished my sex drive I did not yet know. One may have Zorba-esque impulses when a cancer diagnosis first comes in; but a treatment that leaves you bald, moon-faced and exhausted knocks that out of your system pretty fast.


But by 1998, the cancer was gone, my hair was back and I was ready to get back in the game. I was talking to an endocrinologist when I brought up Viagra. This was not to deal with the age-related physical changes I knew it would not address, it was more along the feminist lines of equal pay for equal work: if men have this new sex drug, I want this new sex drug.


“I know it’s supposed to work by increasing blood flow,” I told the doctor, “But if that’s true for men, shouldn’t it be true for women, too?”


“You’re the third woman who asked me that this week,” he said.


He wrote me a prescription. I was not seeing anyone, so I understood that I would have to do both parts myself, but that was fine. I have a low drug threshold and figured it might be best the first time to fly solo. My memory of the directions are hazy: I think there was a warning that one might have a facial flush or headaches or drop dead of a heart attack; that you were to take a pill at least an hour before you planned to get lucky, and, as zero hour approached, you were supposed to help things along by thinking beautiful thoughts, kind of like Peter Pan teaching Wendy and the boys how to fly.


But you know how it is: It’s hard to think beautiful thoughts when you’re wondering, “Is it happening? Do I feel anything? Woof, woof? Hello, sailor? Naaah.”


After about an hour, however, I was aware of a dramatic change. I had developed a red flush on my face; I was a hot tomato, though not the kind I had planned. I had also developed a horrible headache. The sex pill had turned into a bad joke: Not now, honey, I have a headache.


I put a cold cloth on my head and went to sleep. But here’s where it got good: When I slept, I dreamed; one of those extraordinary, sensual, swimming in silk sort of things. I woke up dazed and glowing with just one thought: I gotta get this baby out on the highway and see what it can do.


A few months later I am fixed up with a guy, and after a time he is, under the Seinfeldian definition of human relations (Saturday night date assumed) my official boyfriend. He is middle aged, in good health. How to describe our romantic life with the delicacy a family publication requires? Perhaps a line from “Veronika, der Lenz ist da” (“Veronica, Spring Is Here”), a song popularized by the German group the Comedian Harmonists: “Veronika, der Spargel Wächst” (“Veronica, the asparagus are blooming”). On the other hand, sometimes not. And so, one day, I put it out there in the manner of sport:


“Want to drop some Viagra?” I say.


Here we go again, falling into what I am beginning to think is an inevitable pattern: lying there like a lox, or two loxes, waiting for the train to pull into the station. (Yes, I know it’s a mixed metaphor, but at least I didn’t bring in the asparagus.) So there we are, waiting. And then, suddenly, spring comes to Suffolk County. It’s such a presence. I’m wondering if I should ask it if it hit traffic on the L.I.E. We sit there staring.


My reaction is less impressive. I don’t get a headache this time. And romantically, things are more so, but not so much that I feel compelled to try the little blue pills again.


Onward roll the years. I have a new man in my life, who is 63. He does have health problems, for which his doctor prescribes an E.D. drug. I no longer have any interest in them. My curiosity has been satisfied. Plus I am deeply in love, an aphrodisiac yet to be encapsulated in pharmaceuticals.


We take a vacation in mountain Mexico. We pop into a drugstore to pick up sunscreen and spot the whole gang, Cialis, Viagra, Levitra, on a shelf at the checkout counter. No prescription needed in Mexico, the clerk says. We buy all three drugs and return to the hotel. I try some, he tries some. In retrospect, given the altitude and his health, we are lucky we did not kill him. I came across an old photo the other day. He is on the bed, the drugs in their boxes lined up a in a semi-circle around him. He looks a bit dazed and his nose is red.


Looking at the picture, I wonder if he had a cold.


Then I remember: the flush, the damn flush. If I had kids, I suppose I would have to lie about it.



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In BP Indictments, U.S. Shifts to Hold Individuals Accountable





HOUSTON — Donald J. Vidrine and Robert Kaluza were the two BP supervisors on board the Deepwater Horizon rig who made the last critical decisions before it exploded. David Rainey was a celebrated BP deepwater explorer who testified to members of Congress about how many barrels of oil were spewing daily in the offshore disaster.




Mr. Vidrine, 65, of Lafayette, La., and Mr. Kaluza, 62, of Henderson, Nev., were indicted on Thursday on manslaughter charges in the deaths of 11 fellow workers; Mr. Rainey, 58, of Houston, was accused of making false estimates and charged with obstruction of Congress. They are the faces of a renewed effort by the Justice Department to hold executives accountable for their actions. While their lawyers said the men were scapegoats, Attorney General Eric H. Holder Jr. said at a news conference, “I hope that this sends a clear message to those who would engage in this kind of reckless and wanton conduct.”


The defense lawyers were adamant that their clients would contest the charges, and prosecutors said that the federal investigations were continuing.


Legal scholars said that by charging individuals, the government was signaling a return to the practice of prosecuting officers and managers, and not just their companies, in industrial accidents, which was more common in the 1980s and 1990s.


“If senior managers cut corners, or if they make decisions that put people in harm’s way, then the criminal law is appropriate,” said Jane Barrett, a University of Maryland law professor and former federal prosecutor.


She noted that it was unusual for the Justice Department to prosecute individual corporate officers in recent years, including in the 2005 BP Texas City refinery explosion that killed 15 workers, where only the company was fined.


BP said on Thursday it would pay $4.5 billion in fines and other payments, and the corporation pleaded guilty to 14 criminal charges in connection with spill. The $1.26 billion in criminal fines was the highest since Pfizer in 2009 paid $1.3 billion for illegally marketing an arthritis medication.


The crew was drilling 5,000 feet under the sea floor 41 miles off the Louisiana coast in April 2010 when they lost control of the well during its completion. They tested the pressure of the well, but misinterpreted the test results and underestimated the pressure exerted by the flow of oil or gas up the well. Had the results been properly interpreted, operations would have ceased.


Mr. Vidrine and Mr. Kaluza were negligent in their reading of the kicks of gas popping up from the well that should have suggested that the Deepwater Horizon crew was fast losing control of the ill-fated Macondo well, according to their indictment, and they failed to act or even communicate with their superiors. “Despite these ongoing, glaring indications on the drill pipe that the well was not secure, defendants Kaluza and Vidrine again failed to phone engineers onshore to alert them to the problem, and failed to investigate any further,” the indictment said.


The indictment said they neglected to account for abnormal pressure test results on the well that indicated problems, accepting “illogical” explanations from members of the crew, which caused the “blowout of the well to later occur.”


In a statement, Mr. Kaluza’s lawyers said: “No one should take any satisfaction in this indictment of an innocent man. This is not justice.”


Bob Habans, a lawyer for Mr. Vidrine, called the charges “a miscarriage of justice.”


“We cannot begin to explain or understand the misguided effort of the United States attorney and the Department of Justice to blame Don Vidrine and Bob Kaluza, the other well site leader, for this terrible tragedy.”


Several government and independent reports over the last two years have pointed to sloppy cement jobs in completing the well or the poor design of the well itself as major reasons for the spill. But none of the three was indicted in connection with those problems.


Mr. Rainey was a far more senior executive, one who was known around Houston and the oil world as perhaps the most knowledgeable authority on Gulf oil and gas deposits. According to his indictment, Mr. Rainey obstructed Congressional inquiries and made false statements by underestimating the flow rate to 5,000 barrels a day even as millions were gushing into the Gulf.


Campbell Robertson contributed reporting.



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Jill Kelley, key figure in David Petraeus scandal, led lavish life









TAMPA, Fla. — When Jill Kelley believed a reporter was trespassing at her white-columned mansion in a wealthy neighborhood this week, the Tampa socialite called 911 and claimed diplomatic immunity.

"I'm an honorary consul general, so I have inviolability," an exasperated Kelley told the dispatcher in recordings released by police. "I don't know if you want to get diplomatic protection involved as well."

Kelley isn't a diplomat; she holds the ceremonial title of "honorary consul" for South Korea, one of many informal ties to prestige and power that the energetic 37-year-old mother of three has brandished to climb to the top rungs of the social ladder in this conservative military community.





Kelley, the wife of a cancer surgeon, has a thin resume, a troubled family, shaky finances and a reputation for being, as one acquaintance here put it, "Tampa Kardashian." Now she is central to an unfolding scandal that has forced out David H. Petraeus as CIA director, threatens the career of Marine Gen. John Allen, commander of U.S. and international forces in Afghanistan, and cast previously unknown figures and a sex affair into international notoriety.

Kelley's complaint to the FBI last summer that she was being harassed by email triggered the investigation that uncovered Petraeus' extramarital affair with his biographer, Paula Broadwell, author of those emails. The inquiry also uncovered what the Pentagon has called 20,000 to 30,000 pages of possibly "inappropriate communication" between Kelley and Allen, whose nomination to a prestigious assignment overseeing all NATO military has been put on hold.

Allen "intends to fully cooperate with the inspector general investigators and directed his staff to do the same," his lawyer, Col. John Baker, the chief defense counsel of the Marine Corps, said in a statement Wednesday. "To the extent there are questions about certain communications by Gen. Allen, he shares in the desire to resolve those questions as completely and quickly as possible."

The Army suspended Broadwell's security clearance, which gave her access to classified information. She is a lieutenant colonel and intelligence officer in the Army Reserve.

President Obama said at a White House news conference that he had seen "no evidence at this point" that classified information had been compromised, but noted that the FBI investigation was continuing. He praised Petraeus, who resigned Friday, for his "extraordinary career" in the military and CIA. "We are safer because of the work Dave Petraeus has done," he said.

From 2008 to 2010, Petraeus headed Central Command, which runs U.S. military operations in the Middle East, including the wars in Iraq and Afghanistan. The command is based at MacDill Air Force Base, on a spit of land that juts into Tampa Bay. The base also is home to U.S. Special Operations Command and hosts representatives from 60 nations that joined together to fight terrorism after Sept. 11, 2001.

Balmy weather, a sparkling bay and a military-friendly population have made Tampa a welcome posting for officers and a favorite spot for retirees like Gen. Norman Schwarzkopf, who led the 1991 Persian Gulf War. The late New York Yankees owner George Steinbrenner had a booth at the Palm steakhouse, where his caricature adorns the wall — along with those of two other regulars, Scott and Jill Kelley.

Life here was a step up for Jill Kelley. Born in Beirut, she moved in the mid-1970s with her family to northeast Philadelphia, where they were the "oddballs" in a mostly Irish and German neighborhood, said Kelley's brother, David Khawam. The family opened restaurants in the area, he told reporters.

Scott and Jill Kelley moved to Tampa about a decade ago when Scott, who specializes in surgery for esophageal cancer, was hired by a local hospital. In June 2004, they purchased a 5,500-square-foot red-brick home on Bayshore Boulevard in the city's ritziest neighborhood.

With her dark tresses, high-wattage smile and gregarious personality, Kelley was a natural hostess. She became known for holding Champagne-and-caviar parties on a manicured front lawn, complete with billowing white tents and valet parking. Civic leaders rubbed shoulders with military brass from MacDill, a base so crucial to the local economy that generals were treated like rock stars.

In some cases, they acted that way too.

In February 2010, Petraeus and his wife, Holly, attended their first Gasparilla Pirate Festival, a local version of Mardi Gras. He arrived at the Kelley home with a 28-motorcycle police escort and wore a long string of beads around his neck.

"They became close friends with the general," said former Tampa Mayor Pam Iorio, who was a guest at multiple Kelley bashes. "The parties were purely social. It was a way, particularly with the coalition members, to just be a gracious hostess, to say, 'We're glad you're in Tampa.' There's nothing more to it than that."

Allen and Petraeus stayed in close touch with Kelley after they left Tampa. Although it might seem odd for a general running a war to stay in touch with a hostess back home, it's not unusual in the military world, where officers and their families frequently move and need to promote good relations with community leaders.

"She was part of that social connective tissue for generals and flag officers," said one officer.

Two years ago, Kelley strapped herself into a harness and made a tandem parachute jump with Special Operations troops, another official said. She was named an "honorary ambassador" by allied countries at Central Command and even secured a pass that allowed her to enter MacDill during daylight hours without an escort. That pass was revoked this week.

Even before the scandal broke, she had begun to wear out her welcome, flooding senior officers' inboxes with emails and requests for help organizing her social functions. Her constant presence caused some officers' aides to worry about the appearance of an attractive, outgoing woman cozying up to senior military leaders.





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