LaLa Update: AAC Files Watermarked

Yesterday’s announcement of LaLa’s new free streaming and iPod compatible services sent tremors through more than one digital music executive suite. "Everyone here is spending a lot of time today trying to figure this out," one staffer told Hypebot. "We think this is big, but just how big we don’t know," said another.

Many questions remain unanswered, but in addition to the features reported yesterday we now also know that:

• 
  As of early today , the feature that allows transfer of unprotected WMG song files to the iPod was not enabled
• When functional, the tracks will be in the AAC format but without Fairplay or other DRM. (more)
• They will include a watermark that identifies the purchaser.
• The browser plug-in is the key innovation. By taking the transaction off the PC, LaLa not only offers labels more control and protection; it allows LaLa to control the experience integrating streaming alongside sales  an downloads alongside news and used CD’s. 

LaLa’s pitch to labels is that hey can offer consumers tracks that can be freely enjoyed almost anywhere, but can not be easily traded. Ulitmatel LaLa’s goal is to create a fully integrated music discovery and purchase experience and yesterday they made more major steps in that direction. (Read yesterday’s story here.)