Apple snaps up music streaming service Lala

 

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By Reuters

Posted on 7 Dec 2009 at 07:32

Apple has acquired music streaming service Lala, as the dominant online music retailer explores new models of selling songs.

Apple's iTunes is the leading music service in the US, with more than 70% of all digital music sales. But newer streaming services from companies such as MySpace and Spotify have begun to win over music fans in the past year.

A source familiar with the matter claims Apple is seeking new ways to expand iTunes to move it beyond being a predominantly download service for songs. "Apple recognises that the model is going to evolve into a streaming one and this could probably propel iTunes to the next level," the source claims.

Apple recognises that the model is going to evolve into a streaming one and this could probably propel iTunes to the next level

Apple spokesman Steve Dowling claims: "Apple buys smaller technology companies from time to time and we generally do not comment on our purpose or plans."

The iTunes store offers more than 11 million songs. Apple has sold billions of tracks through iTunes since its launch in 2003.

The Lala service allows users to stream any tune in its catalogue of more than 8 million tracks once for free, and then sells unlimited streams for 10 cents per track and MP3 downloads starting at 79 cents. Lala isn't currently available to users outside of the US.

Lala founder Bill Nguyen said in October his company's revenues total less than $10 million. He said the company had about 100,000 customers. Internet search giant Google recently partnered with Lala to provide users song samples along with links to purchase the music.

Lala has also partnered with Facebook to offer music through the social-networking site.