Apple buys music streaming service LaLa

According to a report on ElectricPig, Apple has bought the music streaming service LaLa for an undisclosed amount, and retained all its technologies and staff.

LaLa operates on a credit system, whereby users buy credits allowing them to stream songs stored on their PC to their mobile devices, much like the recent addition of Spotify to iPhone.

Presumably, this is Apple's answer to such streaming services. It's apparently able to maintain functionality even when wi-fi and cellular coverage drops. The licensing agreements set up with LaLa and the music studios aren't transferable, however, so Apple will be starting from scratch if it does intend to take iTunes into the cloud.

This also points toward the acquisition being more of a talent poach than anything else, and while Apple is refusing to comment on its overall goal it seems likely that iTunes is set for another big update.