CNET: Apple’s Pan for Lala Cloudier Than Ever

Posted on August 3, 2010 by

CNET is reporting that Apple may be scaling back its initial plans for a cloud-based iTunes service as it continues to struggle to reach agreements with record labels.

From CNET:

After Apple acquired last December, the thinking among some music insiders was that Lala’s streaming-music technology could easily be plugged into iTunes–once Apple obtained the proper music licenses., a music service launched in 2006 and shut down by Apple last May, possessed technology that scanned hard drives for existing music libraries and then enabled users to play back the same songs from Lala’s servers via Web-connected devices.

But eight months after the acquisition, Apple is telling executives at the four top labels that if Apple offers any cloud-music features within the next few months, they will likely be “modest in scope” and not include the kind of functionalitythat Apple outlined in meetings with the labels, such as storing users’ music on its servers, sources told CNET. They added that Apple still hasn’t negotiated the kind of licensing deals it would need to distribute music from the cloud.

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