Apple buys music streaming service

Posted on 7 Dec 2009 at 10:29

Apple has acquired music streaming service Lala, prompting speculation that it has plans to extend iTunes and compete with the likes of Spotify.

The New York Times reports that Apple is chiefly interested in Lala’s engineers for their experience in cloud-based, streaming music services.

It isn’t known whether it will continue to allow the Lala to operate, but the service, which is only available in the US, is thought to be a long way from turning a profit. Lala founder Bill Nguyen said in October his company’s revenues total less than $10 million from around 100,000 customers. Apple would also have to renegotiate with record labels, as Lala’s licences to stream music are non-transferable.

Apple declined to be drawn either on its motives or its plans.

“Apple buys smaller technology companies from time to time and we generally do not comment on our purpose or plans,” said spokesman Steve Dowling.

Lala lets users to stream any tune in its catalogue of more than eight million tracks once for free, and then sells unlimited streams for 10¢ per track and MP3 downloads starting at 79¢. It has also recently partnered with Google to provide search users with song samples along with links to purchase the music.

Author: Simon Aughton / Reuters

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