Lala Debuts New 10-cent Downloads… Minus iPods

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Ever heard the phrase, ‘you can’t take it with you?’ Well, with the advent of Sony BMG’s new 10-cent “Web song” collaboration with Lala Media, Inc., you really can’t.

Lala is a digital music retail store, and it’s just gotten together with Sony and three other major record labels, along with thousands of indie labels, to sell songs for 10 cents. The only catch is that you won’t be able to carry it around on your iPod or MP3 player.

The song is meant for computer use only, although of course it’ll be available for full-use download for another 79 or 89 cents.

Free online music streaming

Lala’s revamped website also features free online music streaming-without even the inconvenience of ads, which are a prerequisite for most free streaming sites. Also, the first 50 “Web songs” are free.

Michael Nash, executive vice president of digital strategy and business development for one of Lala’s investors, Warner Music Group, commented on this sign of the music industry’s eagerness to explore new revenue options with the old CD-sale model on the decline.

“The psyche of the music industry right now is that not experimenting is riskier than experimenting,” he said.

Attractive possibilities out there

“Let’s make as many attractive possibilities out there for legal consumption of music” as we can, said Thomas Hesse, Sony president of digital business and U.S. sales, in an interview.

Lala is among a host of new ventures from major and minor companies seeking to find a new-market niche. MySpace Music launched its new site this month, revamped into a place where users can design their own streaming music channels, as well as making download purchases.

Nokia came out with its ‘unlimited downloads’ phone and MP3 player. Napster has renovated its library and downloading options.

Get in on it all, Lala

Lala is just trying to get in on it all. It opened its new test site in June of 2008. 300,000 visitors came to enjoy free one-time song plays, which in turn give the site an idea of the player’s tastes, so that it can suggest music.

After these free listens, the user can buy either the 10-cent or 89-cent versions of the song.

But it’s not an easy market that Lala is trying to cut into, industry analysts insist.  

“Lala has been on a roller coaster ride since its inception,” said Susan Kevorkian, an IDC analyst. “They keep taking risks and new directions. The hope is that they haven’t alienated users.”