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Apple buys Lala

APPLE has acquired digital music service Lala, as the online music giant explores new models for selling songs. Terms of the deal weren't disclosed.

Its iTunes is the leading music service in the United States with more than 70 per cent of digital music sales and it is the leading music retailer too. But newer music streaming services from the likes of News Corp's MySpace Music and Spotify have begun to win over music fans in the past year.

A source familiar with the deal said the iPod, iPhone and Mac maker is seeking new ways to expand iTunes to move it beyond being a predominantly download service for songs.


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