AAPL Stock: 123.25 ( -0.99 )

Printed from offers unlimited music for free

updated 09:40 pm EDT, Mon June 4, 2007

Free music for iPods

Challenging iTunes' pay-per-song model, is looking to revolutionize the digital music business by offering unlimited songs for free. The company is looking to transform its CD-swapping site into a music portal where members can download songs directly to their iPods, bypassing the computer hard drives where most music is stored, according to the AP. The company says it has an agreement with Warner Music Group to sell its catalog of nearly 200,000 songs for $0.99 cents, but that it also allow members to play the songs for free., however, will pay Warner a penny each time someone listens to a song. While most other streaming music sites charge a monthly subscription fee (e.g., Napster) or offer advertising, the Palo Alto-based company will do neither; instead it will rely on revenue from members who buy new CDs or swap used CDs with each other for a fee of $1 per disc. The company also said it would use DRM-free music, much like Apple's recent launch of higher quality, DRM-free music.

The licensing fees are expected to be around $140 million over the first two years (based on current growth projections), according to the founder, but the company will weather the storm and pay those fees as well as allow users to copy music to their iPod (without storing it on their PC).

"To download songs to an iPod, members must download a 3-megabyte plug-in that runs on all major browsers on Windows and Macintosh computers," the AP wrote. "Because the songs aren't stored on the PC hard drive, the primary source for files pirated on peer-to-peer networks, Lala will dispense with traditional digital rights management, which controls which devices can play a song."

The new service could cut into sales from Apple's iTunes, which current sells 5 millions per day, but may actually increase sales of the iPod, according to one IDC analyst.

"ITunes has historically been about driving hardware sales," one IDC analyst told the AP. "If there's another compelling source of music for the iPod, it makes the experience of owning an iPod that much more compelling."

by MacNN Staff





  1. kingyubba

    Joined: Dec 1969



    senuti FTW!

  1. Peter Bonte

    Joined: Dec 1969


    Can't work

    How can they see how many times i listen to a song when there is no DRM on it? Seems vaporware to me.

  1. joe11ee

    Joined: Dec 1969



    Thanks for uploading this, it gave me something to read on my lunch break.

  1. iSkippy

    Joined: Dec 1969


    macnn really needs...

    ...a 'report post' button.

    Bloody spammers.

Login Here

Not a member of the MacNN forums? Register now for free.


Network Headlines


Most Popular


Recent Reviews

Seagate Wireless

It seems like no matter how much internal storage is included today's mobile devices, we, as users, will always find a way to fill th ...

Brother HL-L8250CDN Color Laser Printer

When it comes to selecting a printer, the process is not exactly something most people put a lot of thought into. Printers are often t ...

Moshi iVisor AG and XT for iPad Air 2

Have you ever tried to put in a screen protector that relies on static to cling to the screen? How many bubbles and wrinkles does it h ...


Most Commented