Did Apple buy the Lala music service just to shutter the competition? The iTunes operator acquired Lala last December. Just months later, the streaming music service has announced it will cease to provide service as of May 31.
Lala offers its customers Internet access to a music library such as iTunes. When it launched in October 2008, the site set out to replace what its founders viewed as an outdated approach to uploading MP3 files from a PC. Lala uses licensed technology to instantly match songs from a consumer’s personal music library with the web-based catalog on lala.com.
In what appears to some analysts as an abrupt announcement, web songs, wallets and gift cards are no longer available for purchase on Lala. Uploads have been discontinued, and the company is not accepting new users for the service.
“Any MP3 songs purchased and downloaded from Lala will continue to play as part of your local music library,” the company said in a message to its members. “You can continue to purchase MP3 songs through May 31st using your wallet balance or other payment methods.”
What Are Apple’s Plans?
Phil Leigh, a senior analyst at Inside Digital Media, is betting Apple plans to offer a service similar to Lala as an innovative component of iTunes. Apple hasn’t commented, nor is there any indication of when Apple might launch a streaming iTunes service. In the meantime, competitors like Grooveshark could gain some momentum.
Noteworthy is the fact that Grooveshark offers an application for mobile phones — but not the iPhone. Apple hasn’t approved the Grooveshark application for the iPhone, but it’s available for Android-based phones. Leigh called Grooveshark’s ability to ink deals with the labels for mobile services significant.
“If Apple can get the same type of label deal Grooveshark has, the company will be able to…