Since then, there's little doubt that Lala users moved onto other cloud-based music services such as MOG, Grooveshark, Rdio, and Spotify. And, of course, they've been joined by countless new users.
Shortly before Apple acquired Lala, Lala had introduced a function where members could upload their entire music libraries to their cloud-based accounts, thereby obviating the need for an iTunes music library. That must have gotten tongues in Cupertino wagging. After introducing this function Lala announced it would soon roll out a mobile app. The app never materialized, but Apple came calling with bags full of money, and swallowed Lala whole.
We'll see Tuesday how Apple will price access to cloud-based libraries. In Lala's pricing model, buying web songs cost pennies, albums just a couple of dollars (this gave one unlimited access to the particular song or album as long as they had a wifi or 3G connection), while downloads were fairly consistent with the iTunes model.
Newer services such as MOG offer unlimited access to millions of albums for a monthly fee of $9.99.
And, of course, on the movie and television front, Apple's iTunes faces cloud competition from the likes of Netflix and Hulu, services that offer users instant access to movies and TV shows for flat-monthly fees.