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Apple To Shut Down Lala On May 31

dirk and a large number of other distressed readers let us know that Apple is shuttering Lala, the music service they bought last December, on May 31. "Apple will transfer any remaining money in a user's account to iTunes, and will credit users (via iTunes) for any web songs that were purchased. It's a real shame, as Lala was a much better music service, offering songs in straight MP3 format. Its web service was innovative and ahead of its time. And it was one of the few places that would let you listen to an entire song to sample it (after one complete listen, you then could only hear a 30-second sample)." Reader Dhandforth adds: "10-cent favorites will now cost 9.9x more. What's worse, a community of music fans (followers and followees) will disappear on May 31. Evil. Sigh."

23 of 438 comments (clear)

  1. While I personally didn't use the service... by Pojut · · Score: 4, Insightful

    ...I know people who did, and none of them are happy about this. I've herad nothing but good things about Lala, it's a shame that it will be going away :/

    1. Re:While I personally didn't use the service... by Hatta · · Score: 4, Insightful

      No, it's the licensing. You have to negotiate licensing with every music publisher you carry. I'd imagine that the people responsible for Lala don't want to do that because it sounds like hell and they've already cashed out.

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    2. Re:While I personally didn't use the service... by gyrogeerloose · · Score: 4, Insightful

      They've successfully done it once, though. Seems like an easy way to generate that cash AGAIN when someone else comes along to buy them up, since they won't be competing with their predecessor.

      You can bet that Apple added a no-comptete clause to the contract; in return for Apple's cash, the Lala crew agrees not to create a competing service for x number of years. Standard Operating Procedure in those situations.

      --
      This ain't rocket surgery.
    3. Re:While I personally didn't use the service... by sbeckstead · · Score: 4, Insightful

      Oh but it is. The essence of competition is eliminating competitors. Successfully competing means you win. How do we not understand this. Everybody seems to think that in order to have a product you must have competition, when in fact the perfect business model flourishes on no competition.

    4. Re:While I personally didn't use the service... by nacturation · · Score: 4, Insightful

      That doesn't seem very conducive to a competitive market. :(

      Tell that to the Lala owners who, rather than make their money selling songs to individuals at 50 cents a pop, chose to make their money selling in one giant transaction to their competitor, Apple. Good for them.

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  2. No duh? by Lunix+Nutcase · · Score: 4, Insightful

    Because anyone actually thought that Apple was going to keep running two competing music stores?

    1. Re:No duh? by jgagnon · · Score: 3, Insightful

      Makes you wonder why they purchased it in the first place...

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  3. 3 E's by Slash.Poop · · Score: 4, Insightful

    Embrace
    Extend
    Extinguish

    1. Re:3 E's by gclef · · Score: 4, Insightful

      And here Apple has shown once again that they're more efficient than Microsoft: they skipped step 2 entirely.

    2. Re:3 E's by icebraining · · Score: 4, Insightful

      Then why has Apple spend $80 million to buy it just so it could kill it three months later?

    3. Re:3 E's by s73v3r · · Score: 3, Insightful

      Because they had tech Apple wanted? YouTube was horribly unprofitable, so why did Google spend billions buying them?

  4. You should get a refund by loufoque · · Score: 5, Insightful

    You should get a refund of your money, not have it be transferred to iTunes.
    What you agreed to pay for was Lala's service, not iTunes'.

  5. Re:I Recall That Acquisition Ceremony by Princeofcups · · Score: 3, Insightful

    Or maybe it's just that their business model didn't work. Everyone's favorite companies are those that are giving free services and running at a loss, and then they complain when they turn to advertising, subscriptions, or just go belly up. iTunes is a sustainable business model, and Lala is not. Deal with it.

    --
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  6. Evil? by whisper_jeff · · Score: 4, Insightful

    Reader Dhandforth adds: "10 cent favorites will now cost 9.9x more. What's worse, a community of music fans (followers and followees) will disappear on May 31. Evil. Sigh."

    Evil? Evil?

    You keep using that word but I don't think you know what it means.

  7. Re:Your criteria are lacking. by Delusion_ · · Score: 4, Insightful

    MP3 can be encoded at levels which achieve transparency - just like any other modern audio codec. While I'm not really up on what encoder and bitrates Lala used for its MP3 offerings, the notion that your music just sounds better than my mp3 library assumes that I am encoding MP3s at below-transparency levels, and that you are encoding your AAC, Ogg, or whatever lossy format at transparency levels, or that you are using a lossless codec and that somehow transparency "isn't enough".

    This is incorrect, sir. MP3 as a format choice isn't the sole (or even main) criteria for most people who use it. MP3 is able to achieve transparency, its file sizes are reasonable (LAME encoding at v0 comes to mind), it's compatible with any hardware or software that one will encounter in the real world, and if your friend asks you for a copy of that latest Autechre album, you don't have to pontificate about how your chosen encoding format is better than their chosen encoding format, despite the fact that their software may not support it and their factory-included car CD/MP3 player most certainly won't. A 3% file size decrease with, say, Ogg, simply isn't compelling when it means putting up with the fact that a lot of hardware doesn't support it.

    I'm here for the music. Give me transparency, and give me ubiquity. Your claim that you can achieve a better sound at "x" bitrate is not compelling when the file size of MP3 is not obscene, and when both formats can achieve transparency at a reasonable bitrate. Not having to pontificate about audio formats that hardly anyone actually uses? Hell, that's just icing on the cake.

  8. Re:Apple responds to complaints... by box4831 · · Score: 3, Insightful

    Correction:

    Steve jobs sticks his fat wads of cash in his ears.. "LALALALALALALALALA"

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  9. Re:Straight MP3? by 99BottlesOfBeerInMyF · · Score: 4, Insightful

    but for all practical purposes is useless outside of the iTMS walled garden.

    What are you talking about? How is it useless? It plays on pretty much every modern software and hardware music player made. It plays on the frickin' Zune. Zen, Archos, Sansa, Sony, even the PSP. Songbird, Mplayer, WMP, and everything else I can think of.

    Seriously, back in the day before anyone but Apple used it, it was a valid argument to say you wanted to use the more compatible .mp3 instead of the more efficient .mp4, but now I wonder what you're using that it isn't compatible with.

  10. Re:Steve jobs as borg by Anonymous Coward · · Score: 5, Insightful

    No NO NO,
    The Steve Job Icon needs to be the man on the big screen from the 1984 video.

  11. Not the right meme by ThrowAwaySociety · · Score: 3, Insightful

    Embrace

    Extend

    Extinguish

    This gets +5 insightful?

    EEE does not mean "buy out your competition." EEE means "subvert and discredit your competition, forcing them out of business."

    An EEE strategy in this case would be:
    1. Embrace: Announce that iTunes will become a Lala client, with full support for all Lala features
    2. Extend: Offer new, proprietary features through iTunes that are not available through the regular Lala website, fostering dependence on iTunes as a Lala client
    3. Extinguish: Remove support for Lala from iTunes, leaving all Lala users dependent on iTunes

    In an EEE strategy, Lala would not have gotten a dime from Apple. Apple did not EEE Lala, Lala sold out to the man, plain and simple.

    1. Re:Not the right meme by DrgnDancer · · Score: 3, Insightful

      This. If anyone is "evil" here it's the owners of Lala. You have this service. Lots of people like your service. You sell your service to a larger competitor, knowing full well they either a) plan to close it down and absorb everything useful, b) will give it half a chance, but in the end will probably shut it down and absorb it. Now the larger competitor is evil when they shut it down and absorb it? Since there was no hostile take over here, there are just a few possible scenarios:

      1) Lala was doing well, but the owners wanted more. Apple offered them a large pile of money and they accepted. They knew Apple was planning to shut them down in the near future, and didn't care.

      2) Lala was doing well, but the owners wanted more. Apple offered them a large pile of money and they accepted. Apple told them they had six months and X more piles of money to make the business profitable, or they would shut it down and absorb the useful bits. They failed. They probably cared some, but they would have shown it better if they'd just not sold out in the first place.

      3) Lala was failing. Apple bought it and propped it up for an extra 6 months while they prepared to absorb it. The owners knew this, but either thought it was worth it to keep the service around as long as they could, or just wanted their parts of the pile of money.

      4) Lala was failing. Apple bought it and propped it up for an extra 6 months to give the former owners (now managers) a chance to make it profitable. They failed and now Apple is going to absorb the useful bits.

      That's really about it. The various scenarios present different levels of "evil" on the parts of the owners, but in the end they basically boils down to: either the owners sold out, knowing full well they might be signing the services death warrant, or the owners sold out to keep a sinking ship afloat a little longer and hope for a miracle. In either case I seriously doubt Apple bought the service promising on their crossed hearts to keep it running forever regardless of profitability.

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  12. Serves you right... by ThrowAwaySociety · · Score: 3, Insightful

    If only I could get a refund for my hundreds of web songs :(

    Serves you right for paying for a license to listen to music instead of a downloaded file that you keep.

    Anyone know of a service that sells downloadable, DRM-free music that you can copy to unlimited computers, burn to CD, back up, and maybe use with iPods?

    I think the Amazon music store can do that. I wonder if there are any others....

  13. Re:You Have No Clue About Lala, Do You? by eldavojohn · · Score: 5, Insightful

    iTunes is not in and of itself profitable.

    You're a fool. They're celebrating billions of iTunes song sales and you're telling me that they're taking a hit on each of them? Is that why The New York Times calls it a "profit machine"? Is that why Billboard estimates they made a half billion in profit from song sales one year? The most conservative estimate I can find puts them closer to a 10% profit margin on song sales which means that their billions in revenues equates to hundreds of millions of dollars.

    I tell you what, though. I'm such a nice guy, I'll take the iTunes Media Service off Steve Job's hands and keep supporting only his iPods. I'll start accepting the "loss" and "risk" you seem to associate it with.

    There's no way that Lala could have been profitable.

    Really? The pricing structure I laid out for you didn't look like it could possibly net some profit?

    Here, let me help you out with what actually happened. Jobs saw Lala make some innovations like 10 cents to stream a song as much as you like. He got a bunch of consultants to analyze what would happen if iTMS started doing that. And they said that he would still make money but it wouldn't be the drastically high amount he makes because those streamers would opt for that instead of buying the full price song. So he had a choice. Take some undetermined loss by meeting Lala's functionality and compete with them ... or drop $80 million and burn Lala to the ground. I think he made the right choice for his company and the wrong choice for consumers and actual competitive capitalism. Can't blame him but you're a fool if you think he's losing cash on iTMS. I'm not even a businessman and this is painfully obvious to me.

    --
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  14. Re:Evil?'There Is No Such Thing as Absolute Evil' by nacturation · · Score: 4, Insightful

    Of course, I had to google that. Here's the full interview:

    http://www.spiegel.de/international/world/0,1518,591943,00.html

    An extraordinarily interesting interview, to say the least. Well worth a full read.

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