Apple Acquiring Lala

Jon

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December 4, 2009 4:25 PM PST
Sources: Apple wants technology from struggling Lala

by Greg Sandoval

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(Credit: Ina Fried/CNET News.com)
Update 6:21 p.m. PST: The New York Times and Wall Street Journal are reporting that Apple and Lala have struck a deal.
Apple, which is in talks to acquire Lala, is unlikely offering much for the streaming-music service.
Sources with knowledge of the discussion told me that Apple is interested in bringing some of Lala's engineers on board. According to the sources, Apple is impressed by Lala's technology. The 4-year-old Lala scans users' hard drives and creates a duplicate music library that they can access from Web-enabled devices. The company also sells songs for a dime each.
I posted a story on Friday about the acquisition talks. Apple declined to comment on "rumor and speculation" and a Lala spokesman did not respond to an interview request.
Over at The New York Times, Brad Stone posted a report citing sources who also said Apple had a special interest in obtaining Lala's engineering talent. But the Times also added this:
"The talks (between Apple and Lala) originated when Lala executives concluded their prospects for turning a profit in the short term were dim," Stone wrote. "(Lala) initiated discussions about a potential investment with Eddy Cue, Apple's vice president in charge of iTunes."
That Lala was struggling to turn a profit is consistent with the kind of bleak news that has come out of digital music the past year. Many of the newer and experimental business models, such as ad-supported music, have flopped. The only reasonable question now is how much longer will this shakeout continue?
We saw Ruckus falter and close in January. We saw SpiralFrog flameout spectacularly in March. In August, MySpace picked up iLike, and sources said that MySpace acquired Imeem last month, but the news has not been announced.
 

xan_user

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More on lala...from last year.

LaLa: How Does 10 Cents a Song Strike You? | Listening Post

Steve Jobs decreed that digital music would cost 99 cents a download more than five years ago. But competing with free has been difficult for Apple and others that followed. Jobs himself admitted that only 3 percent of the music on iPods was purchased from the iTunes music store. Could the price of digital music be simply too high?
LaLa hopes so. On Tuesday, the company launched a new pricing plan that lets music fans buy songs from all four major labels plus 170,000 indie labels for a mere 10 cents a song, delivering on their promise to do just that. The catch? For that 10-cent investment, you only get to stream songs from the LaLa website, or through their online player with an iTunes-like interface and fast response time over a broadband connection.

.10 cents a song to for a DRM stream to a web player!!? Sounds like lalapple is a match made in heaven to me.
 

Jon

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Makes me wonder if they'll turn it into a DRM-free service like the iTunes Music store is, and what the hell they'll do with it. Maybe a subscription type service, or an app to have your entire collection streamed to your iPhone on demand, since we won't likely see a 160GB iPhone anytime soon.
 

DAB

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Makes me wonder if they'll turn it into a DRM-free service like the iTunes Music store is, and what the hell they'll do with it. Maybe a subscription type service, or an app to have your entire collection streamed to your iPhone on demand, since we won't likely see a 160GB iPhone anytime soon.

I think whatever they do they will likely roll it into iTunes. Seems to me they are interesting in some sort of streaming service. This gives them to the structure for that.

LaLa was charging so much per pack of songs to stream. If Apple was to do some sort of all you can eat streaming of their library that would be pretty cool.

Rhapsody has that type service now and its darn nice!