42244 0 3 econsultancy_xml <p> <a href="http://www.lala.com/frontend/action/home">Lala.com</a>'s service is launching with tracks from <a href="http://www2.warnerbros.com/main/homepage/homepage.html">Warner Bros'</a> digital catalogue. Users can listen to full songs as often as they like, and buy CDs through the site or download the songs. Though the songs are <a href="/blog/1013-apple-and-emi-announce-drm-free-music-downloads">DRM-free</a>, they can only be downloaded to an iPod. The service is also compatible with <a href="http://www.itunes.com">iTunes</a>. </p> <p>Lala looks good,is easy to use and already has an impressive range of music available, though it is taking a gamble with its business model. </p> <p>Licensing fees alone will cost the company over $140m in the next few years, as it has to pay the record labels a cent for each song streamed through its site, so it will have to sell enough CDs and downloads to cover this expense. </p> <p>According to founder Bill Nguyen:</p> <blockquote> <p> <em>"We believe over the next two years we might lose $40 million. We expect up to 70% of people will be freeloaders just listening to the music but around 30% will be buying music."</em> </p> </blockquote> <p>Lala has raised $14m in two rounds of funding from <a href="http://www.baincapital.com/">Bain Capital</a> and <a href="http://www.ignitionpartners.com/">Ignition</a>, but hopes to raise more. </p> <FormattedContent xmlns="http://www.e-consultancy.com/schema/formattedContent/"> <Paragraph> <Link URL="http://www.lala.com/frontend/action/home" Window="New">Lala.com</Link>'s service is launching with tracks from <Link URL="http://www2.warnerbros.com/main/homepage/homepage.html" Window="New">Warner Bros'</Link> digital catalogue. Users can listen to full songs as often as they like, and buy CDs through the site or download the songs. Though the songs are <Link URL="/blog/1013-apple-and-emi-announce-drm-free-music-downloads" Window="New">DRM-free</Link>, they can only be downloaded to an iPod. The service is also compatible with <Link URL="http://www.itunes.com" Window="New">iTunes</Link>. </Paragraph> <Paragraph>Lala looks good,is easy to use and already has an impressive range of music available, though it is taking a gamble with its business model. </Paragraph> <Paragraph>Licensing fees alone will cost the company over $140m in the next few years, as it has to pay the record labels a cent for each song streamed through its site, so it will have to sell enough CDs and downloads to cover this expense. </Paragraph> <Paragraph>According to founder Bill Nguyen:</Paragraph> <Block> <Paragraph> <Quote>"We believe over the next two years we might lose $40 million. We expect up to 70% of people will be freeloaders just listening to the music but around 30% will be buying music."</Quote> </Paragraph> </Block> <Paragraph>Lala has raised $14m in two rounds of funding from <Link URL="http://www.baincapital.com/" Window="New">Bain Capital</Link> and <Link URL="http://www.ignitionpartners.com/" Window="New">Ignition</Link>, but hopes to raise more. </Paragraph> </FormattedContent> 2007-06-05T13:31:00+01:00 0 1 econsultancy_xml <p> <strong>Silicon Valley startup Lala.com has just gone live with an alternative plan to encourage music downloads.</strong> </p> <p>It is offering free, on-demand streamed music through its site in the hope that enough users will buy CDs and download tracks to make it profitable. </p> <p> <a href="http://www.lala.com"> <img alt="Lala.com" src="http://farm2.static.flickr.com/1033/531485500_85dd8ece49_o.jpg" /> </a> </p> <FormattedContent xmlns="http://www.e-consultancy.com/schema/formattedContent/"> <Paragraph> <Emphasis>Silicon Valley startup Lala.com has just gone live with an alternative plan to encourage music downloads.</Emphasis> </Paragraph> <Paragraph>It is offering free, on-demand streamed music through its site in the hope that enough users will buy CDs and download tracks to make it profitable. </Paragraph> <Paragraph Align="Center"> <Link URL="http://www.lala.com" Window="New"> <Image AlternateText="Lala.com" Source="http://farm2.static.flickr.com/1033/531485500_85dd8ece49_o.jpg"> </Image> </Link> </Paragraph> </FormattedContent> false 1306 363489 Lala launches free streaming music service false 2007-06-06T09:57:00+01:00 lala-launches-free-streaming-music-service 2009-04-28T22:50:54+01:00 2009-04-28T22:50:54+01:00 234