Home If Apple Acquires Lala: 3 Models for Service Integration

If Apple Acquires Lala: 3 Models for Service Integration

If the rumors are true, then something is afoot in the Apple music camp. According to a recent article in Bloomberg, Apple is in talks to acquire online music service Lala. If a sale is finalized between the two companies, a number of new music monetization models can emerge and with Apple holding the supply chain from devices to players to downloads, a streaming music component may prove devastating to others.

Tiered Pricing: With a Lala purchase, Apple could easily employ a tiered pricing model for a streaming service. Users would continue to purchase streams on a per-song basis while also having the option to download songs through the iTunes store.

Full Subscription: In contrast to this model, Apple could also follow MOG’s lead and launch a full subscription service with links to purchase Apple downloads.

Full Subscription with Download Limit: And finally, different still, there’s the opportunity to employ Microsoft’s Zune Pass model. The company could offer a $15 dollar per month subscription streaming music service with the option for users to download their ten favorite songs per month to keep. If Apple decided on this route, downloads would still prove lucrative as users in excess of their download limits would be driven to iTunes for additional sales.

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