Lala.com Offers Free Full-Album Streaming For All

Hours ago, somewhere in Silicon Valley, a startup by the name of Lala.com made a splash on the Web-based digital music scene. A big splash. The business, which previous focused solely on playing middleman to the trading of CDs between folks within its network, has now repositioned itself as a three-pronged audiophilic solution, catering to those interested in enjoying full-album previews and the convenience of digital downloads (DRM-free), as well as maintaining the option to purchase new CDs and trade used ones. Maybe that?s four solutions total. The more the better, we say.

Complete with iPod compatibility (in fact, at the moment the site won?t be play nice with any PMP, or personal media player, other than the iPod), Lala will currently offer all of Warner Music Group?s music collection, the whole of which is available for streaming on-demand within Web browsers. Without advertising, too. The catch? None that we?re aware of. Apparently the company (the studios as well) has signed a deal with Warner ? it intends to do the same with other studios, big and small, though hasn?t as of yet ? in which Lala agrees to pay the studio(s) for the free music streams it provides visitors, and itself receives cash when it makes sales.

We know what you?re thinking. People are so going to take advantage of the free streaming service. Lala founder Bill Nguyen is aware of the probability of such opportunism. He even expects that the company ?might lose $40 million? over the next couple of years because of it. He estimates that ?up to 70 percent of people will be freeloaders just listening to the music,? and ?around 30 percent will be buying music.?

As gloomy as such a forecast may look, it actually appears quite optimistic to us, and we gotta say, there?s even a good chance that Lala can pull this new plan off successfully ? very successfully if it gets extraordinarily viral. The company will also have to keep its business model unique keep copycats riding its coattails.

Which we really cannot see happening at the moment, or even a year or two down the line. Why not? Well, for one, Lala?s presumably going to be running on very slim margins in the coming months (it?s thus far survived on funding by the investors Bain Capital and Ignition), and for anyone to best the company at its own game would mean they would need to pull in even less green for themselves, and, well, who?d want that?

Enough analysis. Go over to Lala and spend some time engorging yourself on free streams. The company after all wants you to buy what they?re selling, and you?ll only do so if you?re happy with what you hear. And with full-album previews, how could you not be?