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Lala to launch free music on demand service

LalaMusic website Lala plans to launch a new music on demand service soon. While online radio sites like Pandora or let provide a stream of audio tailored to your tastes, Lala's service will let you click on an individual song and listen to it. Currently that's only something you can do with subscription services like Rhapsody.

There's just one problem. It costs money to stream audio on demand. A lot more than internet radio stations have to pay to stream music, even if new royalty rates take effect this summer.

In order to offset the costs, Lala hopes to sell CDs through its service. The theory is that visitors to the site will be music fans who are willing to pay for the music they like. But the average user will have to buy one CD per month in order for Lala to break even, that just doesn't seem too likely.

[via TechCrunch]

Tags: internet radio, InternetRadio, lala, music, on demand, OnDemand