Apple acquires Lala

Stephen Withers
Monday, 07 December 2009 02:55

Your IT - Home IT

Apple has acquired music streaming and download service Lala. One of the attractive features of Lala is that users are allowed to play an entire track once at no charge.

Launched in mid 2007, Lala provides streaming and downloadable music. The company has around 100,000 users, and revenues of approximately $US10 million.

Each of its catalogue of over 8 million tracks licensed from major and independent labels is available to members for one free listen. After that, they have the choice of unlimited streaming plays for $US0.10, or $US0.89 for an MP3 download.

Lala's software adds tracks stored on the member's computer to their Lala collection at no charge.

The service also allows music discovery by tapping into ordinary members' tastes along with those of performers, reviewers and DJs.

How can the company afford to provide that initial free listen while paying royalties to rightsholders? Essentially, it's a gamble that enough members will pay for enough music for the company to come out ahead.

Late last week, Apple confirmed that it had acquired Lala for an undisclosed sum.

What might Apple's plans for Lala include? Please read on.