Terms of the deal weren’t disclosed by Apple, which closed the deal Friday.
Lala currently enables users to stream any song in its 8-million song catalogue for free and purchase them for 10 cents a piece.
ITunes is the leading music service in the United States with more than 70 percent of all digital music sales and it is the leading music retailer overall.
A brief statement from Cupertino: “Apple buys smaller technology companies from time to time and we generally do not comment on our purpose or plans,” Apple spokesman Steve Dowling said.
An anonymous source familiar with the matter told Reuters Apple is looking to ways to expand iTunes beyond its existing status as a download service for media.
“Apple recognizes that the [business[ model is going to evolve into a streaming one and this could probably propel iTunes to the next level,” said the person.
The move follows July reports suggesting Apple plans a move into music streaming services.
The lala.com website continues to function as this story hits the wire.