Apple’s Purchase of Lala Could Signal Cheaper, Streaming iTunes

Recently, Apple has sealed the deal to purchase the streaming website Lala. This new addition is very significant towards the development of iTunes.

What Apple particularly is interested in is Lala’s “payment and fulfillment system”, with which Lala sells their customers pre-paid music credits, with which they can purchase their songs. This could help Apple cut down on its credit card transaction costs.

With this new addition, Apple could also perhaps increase its revenue. In 2007, the average iTunes account only purchased an average of 22 songs. However an average Lala customer will pay an average of $67.

Overall Lala will be a beneficial acquisition to iTunes. It will be able to not only sell songs as downloads, but also as streams. In addition, it will reduce Apple’s its credit card transaction costs, and will increase its revenue per user.

http://www.wired.com/epicenter/2009/12/apples-reported-lala-talks-could-lead-to-cheaper-cloud-based-itunes/