• Amazon Launched their cloud service first — without any deals with the major record labels. So while you could upload your music, you can’t stream the labels’ tunes.
• Google Launched their cloud service a little while after Amazon — with an interface that looks nearly the same. They weren’t able to cull deals out of the labels, either.
• Apple They’ll be late to the game, but they have two of the four majors on board, with the other two close to signing. Apple bought the lamented Lala in late 2009. source

• It was the first truly social music service. While Lala took a little while to get its footing, when it finally did, it was nothing short of magical. With Apple’s purchase of the service back in December, we knew this day was coming, but May 31st will still be a sad day for a lot of music fans like us. Here are some reasons we’ll miss Lala but will remain hopeful about its future as part of iTunes.

A quick history of Lala

• 2006 Lala launches as an easy way to trade CDs, similar to Netflix in some ways.
• 2007 Lala adds a free, on-demand way of listening to music. It doesn’t work at all.
• 2008 The company finally nails its most popular form, a 10¢ cloud music model.
• 2009 The company runs out of cash and sells itself to Apple for around $20 million.
• 2010 Apple shuts down the site, possibly to launch a similar iTunes version. NO! *sob*

What Lala had that nobody else did

• Simple, cheap options With songs available for a mere ten cents a piece and completely free to listen to once, it created a low barrier of entry that encouraged new listening habits.
• Easy sharing You could put a Lala embed on your site and share music with other people, legally and free; a number of sites took advantage of this model, from the AV Club to Pitchfork.
• Cloud-based freedom You could put your entire library on the site and listen anywhere. Sadly, Lala never got a chance to do what would’ve really made it a big hit – put it on the iPhone.

Why Lala got away with it

• We said, ‘consumers shouldn’t have to worry about where their files are, they should be able to play their music.’ It’s actually a huge benefit for the labels, because once Lala knows the music that you listen to, it makes perfect sense to say, ‘hey, Wilco has a new album coming out.’
• Lala CEO Bill Nguyen • About the benefits of the cloud music service to record companies. They were able to sell the model to them on the idea that they could provide information that might encourage future purchases. One thing that Nguyen noted is that when people were billed by the service, they bought one out of every five songs, most of which they found through discovery. On Lala, people weren’t simply listening to their collections. They were trying to find new songs. The model worked for eMusic already, but they broadened it.  source

So, what’s next, anyway?

• Well, it could be the next iTunes. Or not. With the service’s recent acquisition by Apple, it’s entirely possible that they’ll take this model and completely make it theirs. Or they might ditch certain parts of it and focus exclusively on the cloud service. Lala was out of money by the end, so they couldn’t see the idea through. But Apple, as you might know, has a ton of money and clout to pull this idea off. Or they could stick with their walled garden approach. We’ll see.

Let’s remember how great it was, guys.

• Post on Twitter about how much you’ll miss the little music locker that could, and we’ll reflect it here. Might as well, right? The tags #riplala or “lala.com” will work just fine. source

• We’re currently out a song-sharing host. OK, we knew this day was coming the second that Apple bought them out, but we didn’t realize it would happen so suddenly. The company is no longer allowing new playlists or web songs to be sold. Is an iTunes equivalent of Lala coming next? We can only hope, guys. This was the only music service that got it right. Being able to sample music – in full – was a revelation. (P.S.: Does anyone have any recommendations for services that we could use for our Saturday Mixtape in the future? Lala was nice because we could stay legal AND share new music. We’ve officially lost that, as of now.) source