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Lala expects huge growth from the search deal

The music industry is facing a very hard road today. Physical format sales are dropping quickly as consumers flock to digital tracks and buy only the songs they want on an ala carte basis rather than whole albums with higher profit margins. Record labels have been so focused on pricing that easy methods of discovering music for users have fallen by the way side.

Google has announced a new partnership for music search in conjunction with Lala and iLike. ILike was purchased by social networking site MySpace in August, and this is the first significant move MySpace has made with the service since its purchase. The new deal will make it easier for music fans to find music by making music related searches on Google.

The new search method will give users who search for a song a popup box that will play at least 30 seconds of the song and at times will play the entire track provided by iLike and Lala. The popup box will also offer links to purchase the track.

Reuters reports that Google is also working with Pandora, iMeem, and Rhapsody to incorporate the links into those music sites as well. The goal is to help users find the music they are looking for and increase sales of tracks and albums. Reuters reports that the new music search features will be rolled out to users of Google on Wednesday.

A Google blog entry read, "Every day we get millions of search queries about music. You want to know more about your favorite artists, find that new album or that iconic song, or figure out the name of that tune stuck in your head."

The search function will also let users search for music based on the title, artist, and lyrics. That means songs that users know some of the words to, but not the artist or title will still be searchable. There were earlier reports that Google worked with music publishers on the service, which Reuters claims are untrue. However, Google reportedly has the full support of the recording industry, as it should since the new feature could increase sales for the labels.

"Everybody's been very supportive. Indeed, our business model is to improve the search experience with the help of streaming partners, which offer interesting business models of their own," said R.J. Pittman, director of product management for Google.

Lala is expecting very big things from the new Google search partnership. Founder Bill Nguyen says that he expects a significant increase in business thanks to the search deal. He told Reuters, "We'll see a thousand percent increase in our business. We have about 100,000 customers and the majority or about 60,000 of them are active, which generate about $67 per year."

Lala revenues reportedly total about $10 million, but that number is expected to grow significantly next year. Nguyen said, "We expect to be one of the largest retailers of online music within one year after this deal." He also expects artists to start releasing music specifically for the Lala platform.

An iPhone app is also in the works from Lala.



Comments     Threshold


The problem isn't buying the music..
By Zyph on 10/29/2009 12:10:08 PM , Rating: 2
Its being able to "find" new music we haven't heard of. The is the one big thing Pandora seems to do better than anyone. After I buy a song I'll listen to it a few hundred times, but my taste in music is always the same. Finding other artists I have never heard of seems to be the biggest issue. Most importantly artists that have the same style as what I'm buying or listening to.




Lala has been great
By Stacey Melissa on 10/29/2009 12:26:30 PM , Rating: 2
I've been using Lala.com to buy my music ever since I heard about them on ZDNet several months ago. They've been awesome, for the most part. Pricing and features are especially good, with full album previews, the cloud jukebox, the $7-8 MP3 albums, and $1 streaming albums. They've even been running really good deals on new releases. The new Creed was $4 on release day this week, as was Marilyn Manson's latest a few months ago. The new Alice In Chains was $3 on release day, and Lala, totally unprompted, refunded me the difference between regular price and sale price after I had bought it, apparently before they'd had a chance to apply the sale price.

The only important things they're missing from iTunes are the wishlist, and the "Complete My Album" feature, and the hugely expansive selection. The selection is still pretty good, though. I'm glad to see Google partnering with them, so hopefully they can grow revenues and name recognition enough to expand the music selection and add the few missing features.




By Titanius on 10/29/2009 12:03:50 PM , Rating: 1
Wow, now that is A LOT!!!

/sarcasm




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