Apple takeover puts Lala out of business

Streaming audio service Lala today said it would shut down on May 31st. The closure follows five months after the buyout by Apple late last year and will see Lala stop taking new users, or paying for web-only songs, effective immediately. Customers can still buy MP3 copies of songs outright and will get iTunes Store credit if their account has a positive balance.

It was already assumed Apple would close down Lala, but the iPhone designer hasn't yet said what its intended plans are for the staff acquired in the deal. Most rumors have centered on an online iTunes locker that would let Apple's handhelds and possibly any web browser stream an existing music collection uploaded to the service.

Apple is relatively late to streaming music as its sometimes rival Microsoft makes it an important component of the Zune HD and the unlimited Zune Pass service. Those using the Zune app or a web browser have already had the option of streaming music they haven't already downloaded through the Zune Pass, and the recent Zune HD 4.5 update lets the MP3 player do the same.

By Electronista Staff