So the New York Times‘ Brad Stone seems to have the inside scoop on the Lala purchase reported earlier by Bloomberg and just after by CNET.  It looks like Apple has bought Lala, not to bring their platform to iTunes, but more as a piecemeal purchase to bring their engineers and experitise with cloud computing into the iTunes music (Movies?  TV?) group. 

Here are some reasons for that:  Lala’s business has to get shut down.  Apple won’t be able to use any of the current licensing schemes that Lala’s customers have signed up for.

Lala