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Edition: U.S. Article Save Email Print Reprints Most Popular Most Shared Six more U.S. banks closed 12:26am EST Obama surprises with Copenhagen summit decision 04 Dec 2009 Poland okays forcible castration for pedophiles 25 Sep 2009 Italian court hands Knox 26 years for Briton's murder | Video 04 Dec 2009 The FBI agent inside the Galleon case 04 Dec 2009 Six more U.S. banks closed 12:26am EST Obama to attend end of Copenhagen summit 04 Dec 2009 Somali sea gangs lure investors at pirate lair 01 Dec 2009 PPR raises $1.22 billion in CFAO IPO 02 Dec 2009 Yahoo sees exponential growth in mobile ads 03 Dec 2009 Apple mute on Lala plans Gabriel Madway and Yinka Adegoke Sat Dec 5, 2009 1:01am EST Related News MySpace hopes high as launches music site in UK Thu, Dec 3 2009 Warner Music posts surprise loss, shares tumble Tue, Nov 24 2009 Apple plans 40-50 store openings in 2010 Thu, Nov 12 2009 Hit streaming service Spotify eyes U.S. music fans Mon, Nov 2 2009 Google launches music search with Lala and iLike Thu, Oct 29 2009 SAN FRANCISCO/NEW YORK (Reuters) - Apple Inc has acquired digital music service Lala, as the dominant online music retailer explores new models for selling songs. Technology | Music | Media Terms of the deal weren't disclosed by Apple, which confirmed the purchase on Friday. ITunes is the leading music service in the United States with more than 70 percent of all digital music sales and it is the leading music retailer overall. But newer music streaming services from the likes of News Corp's MySpace Music and Spotify have begun to win over music fans in the last year. "Apple buys smaller technology companies from time to time and we generally do not comment on our purpose or plans," Apple spokesman Steve Dowling said. A source familiar with the matter said the iPod, iPhone and Mac maker is seeking new ways to expand iTunes to move it beyond being a predominantly download service for songs. The source asked not to be named. "Apple recognizes that the model is going to evolve into a streaming one and this could probably propel iTunes to the next level," said the person. The iTunes store offers more than 11 million songs. Apple has sold billions of tracks through iTunes since its launch in 2003. The Lala service allows users to stream from the Internet any tune in its catalog of more than 8 million songs once for free, and then sells unlimited streams for 10 cents per track and MP3 downloads starting at 79 cents. The Palo Alto, California-based company's investors include Bain Capital Ventures, Ignition Partners and Warner Music. Lala founder Bill Nguyen said in October his company's revenues total less than $10 million. He said the company had about 100,000 customers. Internet search giant Google Inc recently partnered with Lala to provide users song samples along with links to purchase the music. Lala has also partnered with Facebook to offer music through the social networking site. (Reporting by Gabriel Madway in San Francisco and Yinka Adegoke in New York; Editing by Richard Chang and Carol Bishopric) Technology Music Media More from Reuters Six more U.S. banks closed WASHINGTON (Reuters) - Regulators seized six more U.S. banks on Friday, bringing the tally of failures to 130 this year as the bank industry continues to suffer under the weight of deteriorating loans. U.S. recovery appears firmer as unemployment drops GM Chairman Whitacre shakes up senior management Italian court hands Knox 26 years for Briton's murder | Video Rally may have legs, but beware of Scrooge Geithner: Can shift "substantial" bailout funds to jobs » More Top News special report: Most feared man on Wall St? FBI Special Agent B.J. Kang was there for the arrests of Bernie Madoff and Raj Rajaratnam. Who's next? According to court documents and industry sources, Kang may be focusing in on Steven Cohen and hedge fund SAC Capital Advisors. Full Article Video: FBI may be eyeing SAC capital Five facts about SAC Capital Advisors corporate crime Our new home We’ve rebuilt Reuters.com to make the site faster and easier to use, whether you want a quick glance at the top headlines or a longer deep dive into a topic that’s important to you. Full Article Video Tour © Copyright 2009 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts.com Buyouts Europe: Buyouts Conferences: Venture Capital Journal ECVJ International Financing Review International Securitisation Report Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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