When the iPhone maker bought Lala.com, most assumed a music cloud service was on the way. But sources tell CNET that it may take a back seat to video.
Lala, the music service recently acquired by Apple, is being shuttered, but Lala's technology may live on in iTunes cloud music and video features.
An earlier version of this story incorrectly identified the digital music format used at Apple's iTunes. Apple uses the AAC format.
The music service Apple just acquired may have underachieved, but its founder could be the right man if iTunes moves away from downloads and into streaming music.
Dramatically different amounts were reported for what Apple paid to acquire the music service. In this tough environment, it's hard to believe Apple would overpay.
We talk Apple's pickup of music site Lala, and we discuss a site that lets you buy custom-fitted dress shirts while actually making the process kind of fun.
Apple acknowledges that it has purchased the struggling streaming service but declined to comment on reports that Lala was bought for very little money.
Sure, Apple could offer some kind of "cloud" or streaming service, but as the company acquires the streaming-music start-up, its goals may be less ambitious.
Sources with knowledge of the talks say a deal for Lala, a streaming-music service, is close to being finalized. Does Apple plan to stream music?
US music-streaming service Lala signed a massive deal with Google last week to provide links for its new music search feature. We caught up with its founder, Bill Nguyen