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News
Warner Offers Music Free to Listen, Pay to Download
Tuesday, June 5th, 2007 at 4:00 PM - by John Martellaro
The Warner Music Group is working with Internet startup Lala.com to allow customers to listen to music for free, but pay to download the music to their iPods, according to the New York Times.
The music will be available as audio streams which can be listened to for free. However, the customer can choose to pay for and download music. The catch is that the service works only with iPods, the music is downloaded directly to the iPod, bypassing iTunes, and the sales focus is on albums, not individual songs.
The attraction for Warner is the flexibility they’ll have in setting prices, something that Apple doesn’t allow.
Lala.com has received a $14 million investment from Bain Capital and Ignition Partners.
The music files are not copy protected, but since they are loaded directly onto the iPod, it will be a little more difficult for the average user to replicate the files.
There is limited risk for Warner because they will receive a royalty for every song listened to as well. Summing up the business opportunity for Warner, Alex Zubillaga, a Warner VP said, "The evidence we�ve seen is that a lot of people want to own music. And their [Lala] mandate is to sell music."
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