Apple Buys Lala
Why would Apple buy Lala?
For the technology.
Apparently, Apple didn’t have the streaming technology down.
It’s not the first time they’ve done it.
They purchased SoundJam MP and turned it into iTunes.
This is a move that many have been waiting for Apple to make, as consumers move from purchasing to streaming. Spotify the wonder streaming has just moved a step down below iTunes.
From Wired:
This Lala acquisition could also help iTunes increase its revenue-per-user. Steve Jobs admitted in 2007 that the average iTunes user had only bought an average of 22 songs. By contrast, Lala CEO Bill Nguyen told us in October that its paying customers spend an average of $67 on Lala music, which is available both as 10-cent streams and normally-priced downloads (buying a stream is a down payment on the download).
Lala sells batches of credits for songs, saving it money on transaction fees.
LaLa also has technology that copies users’ iTunes music collections into the cloud servers, so that users can play back the songs on internet-connected devices. This feature would ease an Apple transition from locally-stored to cloud-based music. Wired
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