10 Reasons Why Apple's Lala Buy Could Bring Online Success - The Web Is the Future (
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6. The Web is the future
I think
Apple understands that
the future of the OS business and perhaps every facet of its operation, is online. Because of that, the company is
slowly but surely acquiring companies that bring that sense of Web life to its
own services. Of course, Lala won't be the first step in that process, but you
can bet that it will be one of many. Apple sees the writing on the wall. And
the Lala acquisition reflects that.
7. It has clout
Getting into the music-streaming business can be risky. The online
companies that offer those services have been in a non-stop battle with
prominent record labels. But they all lacked something that Apple has: clout.
Record labels can easily pick on a company like Lala because it's small and it
doesn't have much cash. But Apple is an entirely different company. And it
already has strong ties with the record labels. That
should significantly
improve Lala's chances going forward.
8. It has cash
As Apple follows an online strategy, it's also important to note that the
company has cash. Bundles of cash. Any company on the Web that it thinks will
improve its offering can be acquired without much trouble. And if it feels that
a competitor is gaining too much share in one sector or another, it can easily
acquire another company in that space. Simply put, Apple has the cash to do
whatever it want on the Web.
9. Apple doesn't want to be Google
Unlike Microsoft, Apple has no plans to take on Google online. That's a
smart move. Google owns the Web's best profit centers. It has also cornered the
market in those sectors. To try and compete with Google wouldn't make much
sense. That realization should help Apple be far more successful than if it
attempted to beat Google.
10. People know and trust Apple
Perhaps most importantly, Apple is a known and trusted brand on the Web. The
company isn't just another no-name firm that people are suspect of. Apple is a
household name that users trust more than many others. That's an important
first step on the Web. And it's one that Apple has already taken.
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