Friday, February 25, 2011

Apple's Lala purchase appears to have been "insurance"

Apple isn't planning to replace its traditional music download model with a streaming model anytime soon—or at least that's what the company has reportedly been telling the music labels. Several unnamed music industry executives told the Financial Times that Apple has "clarified" its plans to use the cloud for music purposes, emphasizing that the company doesn't want to undermine its current dominant position in the music download market.

According to the execs speaking to FT, Apple likened its long-rumored plans to bring iTunes to the cloud as "insurance." Instead of cannibalizing its own wildly successful download service by introducing a streaming equivalent, Apple said it plans to make it possible for existing iTunes users to store their music remotely. This would enable them to access their libraries from various devices without having to sync via USB.

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