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Apple Shutting Down Lala, Another Great Startup Obliterated

First: I Was A Lala User
Second: Why Do Good Companies Ruin Startups?

I Was A Lala User

I’ll give Apple credit for giving a month of advance notice, but on the other hand (that first part was the first hand), why are they shutting down Lala before they launch I must conclude that it means they’re going to change the business model and neuter features available on and they don’t want to have to deal with migrating current users of the outstanding service. How very Apple of them. Not supporting legacy anything is a good deal if you can swing it. And – unfortunately for me – they can get away with it.

Now, I hadn’t bought all that many web songs on Lala, but it was not exactly a trivial investment – especially for someone like me who used to open up multiple BMG accounts to get 10 CDs for the price of 1 and 4 extra for “referring my friend.” I’m happy to give artists money when I feel they deserve it, and that’s precisely why I loved Lala so much. I could listen to every song on there – the full song – and then decide whether I wanted to buy it. For me at least, I think that probably led to more purchases than I’d made in a long time because I got sick of paying for music that I’d never heard and wasn’t sure if I’d ever want to hear again.

Now, I will get an iTunes store credit for the web songs that I’d purchased on Lala… better than nothing, but it kind of feels like buying stock and then having it exchanged for 1/10th of a share in a new company with the same stock price. I’ll use it, because it’s there and I hate losing money… but… then what? Use the new Or…?

ReadWriteWeb evaluates a few alternatives including MP3tunes, MOG, Napster, and Rhapsody. I’m also going to check out eMusic since I supposedly have 35 free MP3s there… but, in terms of how I use Lala, I think that a combination of Pandora and Amazon will have to fill the gap… With Pandora, I can listen to unlimited full songs for free, and then when I find something I like, I can go over to Amazon and get the MP3. (I could do buy the songs from iTunes as well, since they do sell DRM free MP3s now, but I can’t help but want to avoid Apple since they are the ones who interrupted my music consumption system in the first place) The only issue with my new system is that I can’t just scan new releases, add them to my queue, and then buy the web song for any songs that I want to hear again.

Why Do Good Companies Ruin Startups

I never used Dodgeball so their acquisition and subsequent shuttering by Google didn’t really affect me. But then they took over Jaiku (My posts tagged: Jaiku) and basically shut that down (yeah, it’s still there, but there’s no real support for it any more). Now Apple has bought Lala and is shutting it down. Why?

The obvious answer is: talent grab. Everyone knows that these big companies are basically rewarding the talented developers who started the companies by purchasing their whole company for a significant sum of money. I can’t blame the developers for taking it. And I guess I can’t blame the companies for doing it. That’s just the way the business works. It just sucks for consumers who end up with a crappier end product (eg: Jaiku vs. Google Buzz) because the big company seems to restrict and/or slow the development of the new imitation products. As I mentioned above, the fact that Apple is giving people iTunes store credit for the web songs that they’d purchased on Lala is almost a guarantee that the web songs will not exist on whatever web version of iTunes Apple launches.

Another example: One of my favorite features of Jaiku was the ability to unsubscribe from specific feeds from specific people. So, if I follow someone on Twitter and don’t want to see their imported Twitter feed duplicated in my stream, I could unsubscribe from that and only get their other updates. I have not yet seen that in Google Buzz, and if it’s there, I haven’t seen a place to do it.

It’s tough because, on the one hand, I am very happy for the developers and I do think that they deserve to be rewarded for their hard work. I just don’t understand why, if a site is so successful that it warrants being bought out, it doesn’t continue to be run in that successful manner. Okay, I actually do understand why. I already said it in the second paragraph of this section. The big companies want to pull the talented developers off the successful site to recreate the site for them. So really, what I don’t understand is why the big companies don’t continue to run the successful site and do a better job of integrating it and turning it into what they want instead of just shutting it down and rebuilding.