42244 1 3 econsultancy_xml <p>This business model was a risk, with the idea being that enough of the site's users would ether pay for downloads or buy CDs from the site to cover Lala's payments to record labels. </p> <p> <a href="/blog/1306-lala-launches-free-streaming-music-service">Lala has to pay the record labels</a> a cent for each song streamed through the site, and will pay an estimated $140m in royalties over the next two years, </p> <p>Lala says that the free streaming music will return at some point, though it hasn't commited itself to a specific date.</p> <FormattedContent xmlns="http://www.e-consultancy.com/schema/formattedContent/"> <Paragraph>This business model was a risk, with the idea being that enough of the site's users would ether pay for downloads or buy CDs from the site to cover Lala's payments to record labels. </Paragraph> <Paragraph> <Link URL="/blog/1306-lala-launches-free-streaming-music-service" Window="New">Lala has to pay the record labels</Link> a cent for each song streamed through the site, and will pay an estimated $140m in royalties over the next two years, </Paragraph> <Paragraph>Lala says that the free streaming music will return at some point, though it hasn't commited itself to a specific date.</Paragraph> </FormattedContent> 2007-07-06T10:35:00+01:00 0 1 econsultancy_xml <p> <strong>Startup Lala.com has abandoned its model of allowing users to listen to free streamed music through its website, only a month after it introduced the system.</strong> </p> <p> <a href="http://www.lala.com/frontend/action/home">Lala </a>says the service is being withdrawn becuse its servers couldn't handle the number of users, though Lala needs more labels on board, and this may be behind the decision. </p> <FormattedContent xmlns="http://www.e-consultancy.com/schema/formattedContent/"> <Paragraph> <Emphasis>Startup Lala.com has abandoned its model of allowing users to listen to free streamed music through its website, only a month after it introduced the system.</Emphasis> </Paragraph> <Paragraph> <Link URL="http://www.lala.com/frontend/action/home" Window="New">Lala </Link>says the service is being withdrawn becuse its servers couldn't handle the number of users, though Lala needs more labels on board, and this may be behind the decision. </Paragraph> </FormattedContent> false 1460 363730 Lala abandons free downloads false 2007-07-06T11:25:00+01:00 lala-abandons-free-downloads 2009-04-28T22:53:24+01:00 2009-04-28T22:53:24+01:00 357