Caples says I jinxed cloud music service, Lala...

Well, maybe I did…In my original post, from almost exactly one year ago, and which is basically a visceral reaction to a phone conversation I had w/Caples’ and his stubborn arrogance about the service’s superiority, I make the following points (I’m paraphrasing myself here):

• The idea of the .10c offer w/an upsell opportunity is flawed, a micro micro payment…lame.
• No iPhone app, and why would I pay to stream a collection I already own? Ah…Pandora anyone?
• As my pal Tim Wilson used to say when we were at Boris, this is about the integration story…which Lala didn’t really have.

So I’m sorry to have jixed the service Caples…But wait!

Lest we not forget that Apple acquired Lala…And at the time of the announced shut down, Wired speculated about the reasoning behind it…

While Apple’s hardware has embraced the cloud since .mac (now Mobile Me), its iTunes software lags far behind. Today’s news, while unfortunate for Lala users, represents good news for iTunes users, because it’s a sign that iTunes too could be headed for the cloud, obviating their need to manage music collections manually between multiple devices.

Yah, I guess…I can already manage music collections locally on my network via Home Sharing…And that feature doesn’t make music in the cloud a killer app.

Lala’s interface was pretty bitchin’…And it was clear they understood the consumption model…Particularly with regard to their relating owned songs to songs or artists of potential interest to their users…So perhaps the purchase was just Jobs following up to a fan-boys comment about owning all the engineering talent in the Valley…

In a follow up email, Caples threw out his reasoning for liking the service, again dissin’ the cloud as not that important:

For me, the cloud stuff on Lala wasn’t that important…I liked the cheaper download prices and the higher bitrates, the social media capability (sharing playable album or song widgets on facebook), and the possibility to buy CDs through them if you were so inclined.

Matt Rosoff over at Digital Noise posted his thoughts, making the point that the music industry hates “digital lockers” and that not letting users stream the stuff is bad mojo:

If you persistently refuse to let customers use your product in the way they want to use it, they’ll stop buying it. Ten years of stiff revenue declines in the recorded music business should have made that lesson clear.

Yah, again, I don’t think this is about streaming for Apple…Or for the consumer…How long as Rhapsody been pushing a subscription model from the cloud? Like 12 years? Ah…still not catching on…No, IMHO, this was about the acquisition of talent by Apple, and using that talent to improve their existing products…And perhaps their existing streaming content line…Certainly work to be done…

Anyway…Sorry Caples…While I only embedded one album into one post…I do kinda miss having the option. C’est la Apple.

So I’m using this new service, that MC Caples turned me onto called LaLa…which to my mind, upon initial inspection…is deeply flawed…meaning…while elegant, I don’t see the business model as usurping the iTunes Music Store (ITMS) anytime soon. Here’s why.

I can stream any of their 7 million songs once. Then I can choose to pay .10¢to “add” this song to my permanent online collection…but I can’t download it…so it’s a “cloud” collection of songs…” and then there’s the MP3 download option…compatible w/the iPod or Zunes of the world…for more or less the same pricing as the ITMS. So apart from my ability to listen wherever I am should I have forgotten my iPhone or MacBook Pro (not likely)…I’m still going to need to download the tracks and manually add them to my ITMS library. Strike one.

No iPhone app as best as I can tell…now if they had one…I’d be a lot more inclined to use this regularly…but still, am I going to eat up battery life to stream a collection I would prefer to own? Maybe to check out new music…oh but wait…I’m already using Pandora…which to date, is a far superior intelligent agent when it comes to suggesting music. And yes, you guessed it…they have an iPhone app for streaming. Strike two.

Ok, the silver bullet I’m sure for some people (Hellweg I’m talking to you…) is the price. Here’s the thing here…If I’m willing to pay .10¢ to “add” this song to my permanent online collection, I’m probably willing to ante up the remaining .69¢…and I’m sure that’s the idea…however by confusing the pricing structure w/this option…they loose momentum…I know Arrington and co over at TechCrunch are excited by the technology…and again as elegant at as the LaLa player is…beating the iTunes store purchase integration, preview functionality, music management, encoding and playback will be LaLa’s biggest difficulty…and one I think many others have tried w/similar models only to find themselves wandering in the digital music forest. Strike three.

Anyway, the coolest thing about the tool, and don’t get me wrong…it is cool…may be the ability to embed a preview of an album into your blog or Facebook profile. Will certainly help drive interest in new music…and I’m sure membership for LaLa, whether it results in increased revenue for LaLa remains to be seen…hopefull it will benefit artists…

UPDATE: Ok, I stand corrected…LaLa does have an iPhone App…but it’s not out yet…once it ships…I’ll try it and get back to you.