Listen to Music Free, but Pay to Carry

From WSJ.com.

The music industry is so desperate for new ways to make money that a Silicon Valley start-up is trying a counterintuitive approach: giving the music away as a way to jump-start sales.

Starting today, visitors to Palo Alto-based Lala Media Inc.'s Lala.com Web site will be able to listen for free on their computers to the digital catalog of Warner Music Group Corp. and hundreds of smaller independent music companies. Lala executives say they are working to secure licenses with the other three major music companies.

It's like a subscription music service, but without the monthly subscription fee. Lala is betting that in return for getting all that free access to music at home, listeners will pay to buy the songs they want to take with them on iPods and other music players. The prices will range from $6.50 to $13.50 for an album. (For now, Lala plans to sell music only by the album rather than song by song.)

Lala will work through a normal Web browser. Users of Lala's Web-based service can create and save playlists, send them to friends and browse the virtual collections of other users -- all for free.

More important still, the new service will work with Apple Inc.'s iPods -- something no iTunes competitor featuring major-label content has been able to do.

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