Thursday 21 January 2010

Cloud storage may be main focus of Apple's Lala buyout

Apple's acquisition of Lala won't form the basis of any iTunes subscription service, but instead may help Apple quickly build a cloud-storage component into the next version of iTunes. Apple will supposedly leverage Lala's current music uploading technology to give users "anywhere access" to their music library.
Michael Robertson, guest writing at TechCrunch, cites a number of insider sources who say definitively that Apple will not offer a subscription option to the iTunes Store. Instead, it will complement the current model with cloud storage, giving iTunes users the ability to "to navigate and play their music, videos and playlists from their personal URL using a browser based iTunes experience." Robertson, formerly the CEO of MP3.com, is currently the head of MP3tunes, which offers a cloud-storage service for music files similar to what he describes as the future of iTunes.

Such a strategy is one we speculated Apple would pursue, and one that sources for the Wall Street Journal also claimed would be wrapped into iTunes in a future update. Obviously, Lala's technology and engineering expertise, combined with a giant data center, could power such a feature. Robertson suggests that doing so could make an end-run around having to negotiate additional streaming licenses from record labels, since each library would be linked to a specific customer.

"Apple will link the tens of millions of previously sold iPods, Touches, AppleTV and iTablets to mobile iTunes giving users seamless playback of their media from a wide range of Apple branded devices," Robertson said. "iTunes shoppers will be able to continue to buy music and movies as they can now, with purchases still being downloaded, but once downloaded they will be automatically loaded to their mobile iTunes area for anywhere access."

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