Lala seems to be having a hard time settling on a business model. The company started off as a Peerflix clone, a site that would facilitate CD swapping among its users. For some reason, the site's initial launch got tons of press, despite the fact that this model had been tried in the past with little success. More recently, the site started offering free music streaming of Warner Music albums as an inducement to purchase downloads from the site. But it looks like that model wasn't working as planned, as the company has already yanked the free streaming, ostensibly due to high bandwidth costs. There may be some truth to that, but the more likely reason is that nobody was buying any music from the site, or at least not as much as hoped. Since the company is great at generating hype, it will undoubtedly reinvent itself again to much fanfare, but little actual success.
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