$0.10 Songs Coming to iTunes? Apple to Aquire Lala

[nickhesson]

It appears that the folks over at Bloomberg are reporting that Apple is "in talks to acquire online music service Lala, according to two people familiar with the matter." Lala, along with MySpace, power a full-song streaming service that uses Google's new music search, and is also part of the Facebook gift shop. If the supposed acquisition actually happens, it will play a big role in Apple moving towards the digital 'Cloud' strategy. This would be a giant step forward for iTunes since it first launched it's music service.

So why would songs be cheaper? Well, the folks over at Lala already have all the streaming licenses in place with major music companies and use a different technique to deliver audio to it's users. Lala's service will let customers listen to any song once, for free. For $0.10 the customer can then have access to the song and listen to it from anywhere on the internet. Unlike iTunes, which downloads the songs to a users hard drive, Lala's downloads are stored on servers on whats called 'cloud computing'. If a customer decides to download a track to their harddrive, the cost is $0.79 cents. iTunes prices vary from $0.99 cents to $1.29.

Lala would be at least the third digital music startup acquired since August. MySpace acquired ILike in August and Imeem last month. Apple Inc., maker of the iPod player and iTunes music software, is in talks to acquire online music service Lala, according to two people familiar with the matter.

The terms of the deal weren’t known. The people declined to be identified because talks are still in progress. Investors in Palo Alto, California-based Lala include New York-based Warner Music Group Corp., Boston-based Bain Capital Ventures and Ignition Partners in Bellevue, Washington.

Lala, which is privately held, offers access to more than 8 million songs, including tracks from EMI Music, Warner Music, Sony BMG Music Entertainment and Universal Music Group.

Source: [Bloomberg]

After reading a similar article over at TechCrunch, it looks like Jason Kincaid decided to go and pay Lala a visit to see if he could find anything out.

Update: I walked over to the Lala office, which is only a few blocks from us, to see if I could gather any more details. They didn't seem particularly happy to see me. I knocked on the door and a Lala employee answered, keeping the door half shut so that I couldn't see in. I asked if any of the company's executives were around. He looked over his shoulder, asked if they were, and a second later said they weren't (it was not a particularly convincing effort). He promptly shut the door, and I'm pretty sure I heard someone inside say something to the effect of "Are you serious, don't answer it!".

He also notes the preview they covered on the Lala iPhone app about a month ago, so perhaps that kickstarted the idea, after it made it through their silly approval system. (I can just picture it coming through and some alert goes off that indicates "Possible Acquisition Candidate"and Steve Jobs gets and email to set up a meeting.

Official Lala Website: Lala - Where music plays

Some Facts:

Lala was started by Seven Networks Inc. founder Bill Nguyen to let people trade compact discs via the mail. Nguyen also founded Onebox, which was acquired by Openwave Systems Inc. in 2000 for $513.5 million. Lala Chief Executive Officer Geoff Ralston was vice president of engineering at Yahoo! Inc. The current version of Lala debuted last year.

[plcrules]

a lot cheaper but ppl need music on subways so a lot r gonna download

btw lala is a funny name

[Ichwohneinloche]

funny name it is but how does streaming help? Like the above said, we need it stored to listen when we cant stream or dont want to waste battery to stream.

[nickhesson]

funny name it is but how does streaming help? Like the above said, we need it stored to listen when we cant stream or dont want to waste battery to stream.

I would imagine that alongside the new cloud service, would be some price drops due to some additional music licensing they would acquire.

Now if that's not the case, it really doesn't help the folks who download, but it does provide a new angle on how you can obtain a song at any moment, from anywhere, for super cheap.

Between my Wi-Fi and local wi-fi available it would be nice to have. Even on those who pay a **** ton for data but never use it, here is something they can save some money and space on.

Agreed, it won't be the best of news for everyone, but overall it will be to have some new options for listening to and purchasing music online.

[romeo_herman]

But all my song I got its free.....

[nickhesson]

The Lala service offers DRM-free mp3 tracks can be purchased from anywhere between 69¢ and $1.29. So hopefully that can indicate a drop in downloaded songs from 0.99.

[awesomeSlayer]

Better than iTunes's prices.

[ROFLwaffle]

But all my song I got its free.....

Same here, Limewire was the best thing ever invented.

[youngbrammer]

I love Lala! I use it for music now of over iTunes now. If Apple purchased this site and kept up the ten cent price tag with cloud services. Also, adding over the air apps to the iPod app on the iPhone and iPod Touch (as well as a built-in radio app)

[steve-z17]

Doesn't seem like it'll be a very popular service. Who knows though, a lot of ppl might actually like it. The whole "being connected to listen to music" doesn't sound too appealing.

[southfrisco]

Very cheap and I wonder if any of the revenue sees its way back into the artists pockets. I am thinking half pennies on the dollar if that much.

[tudtran]

Those 10 cents songs will become a $1 at itunes. LOL

[youngbrammer]

The reason Lala is the best for me is that I'm not limited to five computers and have to have different copies of each such as with iTunes. I have W7 and Mac dual booting on my Mac so it's really convient. I also don't have to waste hard drive on both. Also, I don't need to leave my computer running to use Simplify Media to use it on different computers. Love the first 25 free songs and 5 songs/person referred. Love $1 albums too!

[ecd5000]

Same here, Limewire was the best thing ever invented.

well said

[rhekt]

yeah i think people are gonna opt more for the download vs the streaming due to more flexability

[hollow0]

The idea is nice. I would prefer the download instead of streaming. Less possibility of lag?

[youngbrammer]

I've read somewhere that they make three times per account than iTunes does. Now sure if it's true but I'd bet it's cause you feel more compelled to buy the album because it's the same price as on song from the album on iTunes. Plus with albums you get the full music experience.

[DayumQuitPlayin]

Same here, Limewire was the best thing ever invented.

Actually.. Napster was the best thing ever invented. If it wasn't for Napster.. we wouldn't really have had LimeWire

[nickhesson]

Same here, Limewire was the best thing ever invented.

use frostwire instead of limewire. Limewire has spyware.

[Zeal]

Google should of bought it just to screw with Apple.