Apple is supposedly planning to use its acquisition of online music service Lala to transform iTunes into a Web-based service

The future of music is Web-based, on-demand broadcast to any home or mobile phone.

But.

If it’s true, folding lala into iTunes will introduce lala (or lala’s technology) to a wider audience, but I don’t see it increasing the purchase of web-only tracks significantly in the near-term.  Without reliable mobile 3G connections or a local cache for offline listening, it’s too risky for customers.  For computer-based listening, it’s cheaper to go with Rhapsody or Napster—neither of which is overwhelmingly popular.  (Spotify may change this when it comes to the US.)

In the US, the most likely early adopters of Web-based music are mobile, tech-savvy music fans in urban areas—i.e., iPhone owners.  But AT&T’s network is iffy in heavy areas, they’re trying to move backward on unlimited data access, and it doesn’t look like the iPhone is going to CDMA anytime soon.  This is gonna take a while.

Source: mattlehrer