'Where music plays'

An updated version of Lala — a music web service that debuted as a CD-swapping service, then a free music-streaming service in June '07 — exited private beta yesterday.

The new site offers music lovers six million songs for streaming or downloading, as well as social features bringing it a hair's breadth closer to competition with iTunes.

Upon registering, users get 50 free "points" redeemable for 50 free "web songs" — streaming-only versions that usually cost $0.10 each. For 79 cents more, users can download a DRM-free MP3, compatible with iTunes and Windows Media Player. Albums are also slightly cheaper than on iTunes: most of Apple's $9.99 albums cost $7.49 on Lala.

Social and sharing features mirror those of any other social network: users build a profile, add "Friends," and can "follow" others to find out what they're listening to. In this way, they can discover new music from friends and try out new songs. (Members are permitted to play a song or album once at no charge.)

Lala's collection is buttressed by a "kosher" deal from the four major labels and 170,000 independent labels, meaning it won't get shut down by the music industry, which was My.MP3.com's fate eight years ago, writes Harry McCracken at Technologizer.

My.MP3.com allowed users to upload songs they owned onto an online library, giving them the option to listen to it from any PC. Lala's Music Mover app now provides the same service.

THe company is currently preparing an app that streams music directly to iPhones from an internet connection, the equivalent of "having an iPod with infinite capacity," McCracken gushes.

Despite competitive pressure from Rhapsody and Amazon's DRM-free music store, iTunes remains the No. 1 source of digital music, according to an Ipsos study released last week.