[opendtv] Apple said to be close to buying music streaming service

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Mon, 7 Dec 2009 09:09:43 -0600

My first reaction was that this sort of service could replace regular radio in 
a hurry. But then I read:

"In October, co-founder Bill Nguyen demonstrated a working model of the app to 
Associated Press. It allows customers to stream songs from a 'digital locker' 
for an unlimited time for 10 cents apiece."

Ten cents apiece? Holy cow. Imagine having this playing in the background like 
a radio. I can see a lot of P.O.ed parents when they get the monthly bill. And 
the audio quality isn't even up to iTunes downloads.

Bert

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http://www.rethink-wireless.com/article.asp?article_id=2228

Apple said to be close to buying music streaming service
By CAROLINE GABRIEL

Published: 7 December, 2009

Streaming versus downloading - one of the major debates over the future of 
digital music and video, particularly on mobile devices. Apple, which set a new 
bar for mobile downloads and stores with the iPod, iTunes and iPhone, doffed 
its hat slightly to the rise of streaming when it allowed popular music service 
Spotify into its App Store. Some observers said it should acquire the firm to 
ensure it could make its devices as optimal for streamed as for locally stored 
tracks, and it has taken their advice - though its choice of prey is fast song 
streaming firm Lala.com from Silicon Valley.

Apple is reported to be in "advanced talks" to buy Lala.com, which has 
threatened "the end of MP3" with its fast streaming app for the iPhone. The 
firm has struggled financially and its app is not yet public, but it has 
nevertheless made a big impact on the world of music. In October, co-founder 
Bill Nguyen demonstrated a working model of the app to Associated Press. It 
allows customers to stream songs from a 'digital locker' for an unlimited time 
for 10 cents apiece. It does not offer the same level of sound quality as 
iTunes, but loads and plays tracks in just a few seconds through the use of 
intelligent caching. It can even support playback outside cellphone coverage 
areas.

Presumably Apple thinks it would be better to control such an app than let it 
take on the iTunes model alone or, worse, with unfriendly partners. Offered 
side by side on the iPhone, it could market Lala, whose charges undercut 
iTunes', as a 'cheap and cheerful' option, with acceptable but still inferior 
sound quality. iTunes songs usually cost from 69 cents to $1.29.

Lala, based in Palo Alto, California, was launched in 2006 as a CD trading 
site, with $3m in venture capital from Bain Capital, Ignition Partners and 
Warner Music Group, and refocused on streaming in 2008. Recently, it became 
part of Google's new music search feature, which offers links to free songs at 
the top of results pages. Lala, which has deals with all the major record 
companies, provides about half of those songs. It also offers a service that 
allows Facebook friends to send web tracks to each other, for 10 cents each, to 
stream on their pages, or 90-cent MP3 downloads.
 
 
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