Days after the O2 Arena was officially opened by Bon Jovi, the venue's little brother was unveiled with a concert for competition winners featuring The Magic Numbers and Crowded House.

With a capacity of 2,350, Indigo is one tenth the size of the arena but just as slick. It is actually branded as IndigO2, but no one is seriously expected to say that. Just Indigo will do.

Tiny Dancers' singer David Kay didn't even manage that, though. The Sheffield band were the first to play the venue, in front of a few dozen fans early on, and Kay's opening words will probably be one variation on a theme in the months ahead. "How's everyone doing tonight in the Millennium Dome?" he asked. "A shining beacon to Blair's Britain. Well, we're in Brown town now."

Their indie tunes were decent enough, but they were bettered by The Thrills. The Irish band have been derided as ersatz Californian rock, but they played well, and the introduction of a mandolin sounded sweetly uplifting.

Actually, the sound is probably Indigo's best feature: unlike some other venues, it was sharp and at the optimum volume.

I also had a perfect view from the balcony in a comfortable swivel chair in the VIP section known as Kings' Row. For £500-a-year membership (£2,200 corporate rate), you get the first chance to buy tickets and access to the VIP bar. Is it worth it? Probably not.

I had the best seat in the house, but it was a bit too cosy up there and The Magic Numbers' lively set felt like watching a band in a TV studio - although that was probably partly because it was being filmed. It will be available at www. aolsummercooler.co.uk from 6 July.

Things got better when I went downstairs to stand with the crowd, although with such pristine surroundings and abundant lighting, the atmosphere was never going to be too exciting. The edgy design - exposed black pipes, walls covered in metallic hexagons and unnecessary fabric resembling net curtains - was also slightly distracting.

As The Magic Numbers' Romeo Stodart said: "This is shiny and new and it needs to be lived in a lot more, then you can get the atmosphere." The re-formed Crowded House were just right to launch it, with a depth to their songwriting that was evident in the new single Don't Stop Now and Nineties classics such as Weather With You. The band, who formed in Australia in the mid-Eighties, may be mid-paced and middle-aged, but they still got a few singalongs at this Indigo dry run.

Local boy Jools Holland will play the first official ticketed concert on Monday.