SAN FRANCISCO (Dow Jones)--Apple Inc. (AAPL) said Friday it was shutting down its Lala.com online music service at the end of May, a move prompting speculation the iPhone maker might soon launch a new Web-based version of its iTunes music store.
Lala, which Apple bought in December for an undisclosed price, lets users stream any track from its 8 million-song Internet-based catalogue once for free, and it also sold unlimited streams for 10 cents per track. Members could also purchase MP3 downloads starting at 79 cents.
A message on Lala's home page says the service will no longer accept new users and will shut down May 31. Customers who have paid to stream music will be refunded with iTunes credits. Apple spokesman Jason Roth declined to comment on the company's plans after it shuts down Lala.
Observers have speculated that Apple will use Lala's "cloud" technology to incorporate a Web subscription service into its popular iTunes store, a download service that users typically access through a desktop application. A cloud-based service would enable mobile users to listen to music stored on iTunes servers through cellphone networks.
But Gartner analyst Michael McGuire argued that Apple would be unlikely to offer a cloud-based service until it could be sure it was reliable for iPhone users--a key issue given widespread complaints about the network unreliability of AT&T Inc. (T), Apple's exclusive carrier partner. "Some sort of cloud service is inevitable, but when? Who knows," he said.
-By Scott Morrison, Dow Jones Newswires; 415-765-6118; scott.morrison@dowjones.com
link: http://online.wsj.com/article/BT-CO-20100430-718301.html?mod=WSJ_latestheadlines
Lala, which Apple bought in December for an undisclosed price, lets users stream any track from its 8 million-song Internet-based catalogue once for free, and it also sold unlimited streams for 10 cents per track. Members could also purchase MP3 downloads starting at 79 cents.
A message on Lala's home page says the service will no longer accept new users and will shut down May 31. Customers who have paid to stream music will be refunded with iTunes credits. Apple spokesman Jason Roth declined to comment on the company's plans after it shuts down Lala.
Observers have speculated that Apple will use Lala's "cloud" technology to incorporate a Web subscription service into its popular iTunes store, a download service that users typically access through a desktop application. A cloud-based service would enable mobile users to listen to music stored on iTunes servers through cellphone networks.
But Gartner analyst Michael McGuire argued that Apple would be unlikely to offer a cloud-based service until it could be sure it was reliable for iPhone users--a key issue given widespread complaints about the network unreliability of AT&T Inc. (T), Apple's exclusive carrier partner. "Some sort of cloud service is inevitable, but when? Who knows," he said.
-By Scott Morrison, Dow Jones Newswires; 415-765-6118; scott.morrison@dowjones.com
link: http://online.wsj.com/article/BT-CO-20100430-718301.html?mod=WSJ_latestheadlines