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Lala bought by Apple, streaming iTunes Store around the bend?

Earlier today, Greg Sandoval at CNET reported that Apple was in talks to buy out music-streaming service Lala; his piece suggested that these talks were in advanced stages, and a deal could happen at any time -- Apple just needed to sign on the dotted line.

As of this evening, Sandoval's rumor is looking a lot more like a done deal. The Wall Street Journal and the NY Times are both confirming that Apple has pulled the trigger and spent a minuscule fraction of those billions in cash on Lala. No numbers were announced, but the WSJ notes that an investment of $20 million in Lala from Warner Music Group was written down by more than 50% earlier this year.

Why Lala for Apple? The AP noted that Lala co-founder Bill Nguyen demoed an iPhone app in October that allowed 'intelligently cached' songs to be streamed to your iPhone, with the recently-streamed songs replayable even outside of cell coverage areas; Wired suggests that Lala's bundle-payment setup, where users buy stream credits, could save Apple's iTunes Store millions in credit card fulfillment charges. The deal is expected to put Nguyen and the Lala engineers on Apple's payroll, although the Times notes that Lala's agreements with the labels to stream music are non-transferable.

Lala's model for music streaming is an interesting one; the service scans your hard drive for songs you already own and lets you stream them at will, taking the concept Apple's also providing with Home Share to the Web (other services also let you share media between iTunes instances). You can also choose to stream songs you don't already own for $0.10 a piece, and 'upgrade' to a downloadable version at will.

Lala also recently made an agreement with Google to offer music previews in Google searches, greatly expanding Lala's reach. It's not clear whether Apple's purchase will have any affect on that arrangement

Is this a streaming service you would like to see come to iTunes? Leave a comment below and let us know!

Earlier today, Greg Sandoval at CNET reported that Apple was in talks to buy out music-streaming service Lala; his piece suggested that...
 

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Keepersdeadeyes

I don't see Apple doing a all you can eat like Zune or Netflix. Which is a shame. They would gather a high amount of business though their to controlling to let that happen. I don't like paying per song because I"m also so random in what I want to hear. By the end of the month by bill would be extremely high.

December 05 2009 at 10:47 AM Report abuse rate up rate down Reply
2 replies to Keepersdeadeyes's comment
mike

BS.

Most people like bands and their songs. You're fascination with 'random' music sounds like nonsense.

December 05 2009 at 12:53 PM Report abuse rate up rate down Reply
Mobile Phone Diva

I have my favorite artists, but through subscription music and Pandora, which both offer "random" music, I've found lots of new artists I now like. Keepersdeadeyes's not so far off the mark IMO.

December 05 2009 at 2:12 PM Report abuse rate up rate down Reply
dugnsand

Joachim-
The word is minuscule not "miniscule."

December 05 2009 at 9:47 AM Report abuse rate up rate down Reply
2 replies to dugnsand's comment
Michael Rose

Actually one is a variant -- but valid -- spelling of the other.

http://dictionary.reference.com/browse/miniscule

December 05 2009 at 5:40 PM Report abuse rate up rate down Reply
tdowling

Although *technically*, despite its mention in dictionaries, "mini-" is still incorrect. So says Apple's Dictionary.app:

"The correct spelling is minuscule rather than miniscule. The latter is a common error, which has arisen by analogy with other words beginning with mini-, where the meaning is similarly ‘very small.’"

Just sayin', is all.

December 05 2009 at 11:42 PM Report abuse rate up rate down Reply
jonericrumpf

I didn't know about Lala until this news came out yesterday, but I have been wanting a service like this for years. I signed up, downloaded the Music Mover and let it run overnight. Now I can access "my" music library from any computer with a web browser without actually having to connect back to home computer.
I am anxious to see what Apple does with this purchase. It would be great if they expanded the service to include video as well? Truly iTunes anywhere.

December 05 2009 at 8:19 AM Report abuse rate up rate down Reply
milk

Since I subscribed to Spotify I've hardly touched itunes (except for downloading podcasts). Hopefully Apple don't feel they have too much money / market-share invested in the download only option. They need to constantly adapt to new tech or they run the risk of becoming just another stubborn music industry dinosaur.
Not sure if its going to be enough to lure me back to the bloated i-tunes store but I'm cautiously optimistic that the hook up with Lala is a good move for Apple.

December 05 2009 at 4:58 AM Report abuse rate up rate down Reply
Si

effect.

December 05 2009 at 4:33 AM Report abuse rate up rate down Reply
tony

I am just fed up with all this discussion about downloading or streaming. The quality of the audio is very poor in both cases.

Time to get back to a decent service delivering, at least, CD quality audio (16bit/44kHz AIFF or FLAC) and then add on premium downloads of HD quality (say 24bit/96kHz FLAC). Everyone's conception of music today is being murdered by the boom box services that lack fidelity.

Time to move the industry forwards, kill the CD delivery chain and bring downloads forward. Then get higher quality audio into the main stream

December 05 2009 at 1:36 AM Report abuse rate up rate down Reply
2 replies to tony's comment
jiverson

Agreed.

December 05 2009 at 12:01 PM Report abuse rate up rate down Reply
Mobile Phone Diva

Unfortunately I can see the greedy labels demanding more for FLAC downloads.

December 05 2009 at 2:18 PM Report abuse rate up rate down Reply
Logan

Lala had the best prices on the internet for music, by far. Most tracks were $.89 and most albums were $7.49. I went from being a 100% torrenter to actually spending close to $70 in the past month, just because I felt like their prices were actually reasonable. And I absolutely LOVED the full preview feature. I was hoping for a Lala iPhone app, I didn't know they had one that close to production.

If Apple takes away what makes Lala great, it'll just be straight back to torrents for me.

And to think, if we could remove the labels, artists could charge $3 for an album and make $2.20 more than they do now on a $10 album.

December 05 2009 at 12:26 AM Report abuse rate up rate down Reply
2 replies to Logan's comment
phytonix

Don't be silly. Without labels, most artists will be nothing. It takes more than a band to make music.

December 05 2009 at 12:53 AM Report abuse rate up rate down Reply
Mobile Phone Diva

phytonix, it's the labels that have RUINED the music industry. I agree, labels as we know them need to GO.

December 05 2009 at 2:04 PM Report abuse rate up rate down Reply
Ben

This has tremendous potential for greatness and for ruin.

If Apple integrates Lala's services into iTunes and/or MobileMe, then I could see this being a great thing.

However, if Apple did this just to pick up some great programmers and to knock off a potential competitor then I'm going to be shopping at the Amazon MP3 store even more.

The Lala iPhone App was so close to release, I hope it still comes out. It's pretty ironic that currently the only songs that I don't have access to on Lala are the DRM'ed iTunes songs that I've purchased, and depending on what happens here they might be the only songs that I'll be able to access in the future.

December 04 2009 at 11:56 PM Report abuse rate up rate down Reply
2 replies to Ben's comment
mshannoncarver

Was waiting impatiently for the lala iphone app and was hoping for a android app for my android device. It sucks that Apple bought LaLa. It had potential and now Steve Jobs will lock it down. I guess I will moved to MOG now since they have all you can eat 5$ option and plus they will have both an iphone and android app.

December 05 2009 at 12:12 AM Report abuse rate up rate down Reply
Ben

Yeah I'm going to be looking for another option as well. Hopefully Spotify comes across the pond soon.

Although there won't be background support for it which is annoying but it is what it is. Hopefully this purchasing of Lala will bring background streaming to the iPod app.

December 05 2009 at 12:18 AM Report abuse rate up rate down Reply
Dano

@caskey: Well, I thought about that, but what made me think otherwise was the comment about how LaLa's service "scans your hard drive". Following that link reveals "matches the songs on your computer to Lala's licensed catalog", which means LaLa see's what you have, compares it with what they're licensed to play, then streams what you can hear from "their" copy. There's no backup of our iTunes music "in the cloud", it's LaLa's music that is in the cloud.

December 04 2009 at 11:52 PM Report abuse rate up rate down Reply
6 replies to Dano's comment
Dano

Funny that two people read this as 'backing up music to the cloud'. I didn't read it that way at all, rather, I see it as a service integrated into your own personal iTunes collection sitting on your own personal hard drive, and streaming that music from your hard drive "through" the cloud to your personal device (iPod/iPhone). Either way, the more interesting piece for me was the streaming subscription - yes, I for one would probably do that. There is music I am curious about and would like to listen to in order to decide whether or not I'd like to purchase. Current models give a 10-15 second clip, but that's rarely enough and often misses some unique hook or something in the song itself - this way, I can hear the entire piece and make a better decision about purchasing.

December 04 2009 at 11:29 PM Report abuse rate up rate down Reply
1 reply to Dano's comment
caskey

If there wasn't redundancy between your hard drive and a 'cloud' copy, wouldn't the service require that your main iTunes computer be on, awake and connected to the internet at all times? You wouldn't be able to load something onto your iPhone unless your computer was sitting at home ready to stream it to your device. I carry my laptop with me most of the time and it's my only machine. Something about that setup doesn't really have the "It just works" feeling that Apple tries to go for with these types of services.

December 04 2009 at 11:41 PM Report abuse rate up rate down Reply
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