Lala Halts Streaming Features, Blames Bandwidth

CD-swapping startup Lala has now suspended a number of on-demand, streaming audio features.

The company recently launched a free streaming offering as part of a larger digital music model that also promised direct-to-iPod transfers of purchased tracks.  But music fans are currently unable to enjoy the full-length tracks, though thirty-second clips are still available.

Earlier, Lala negotiated a deal with Warner Music Group to enable the full streams, though licenses from other majors have not yet been obtained.  The company noted that the service is being suspended because of strong consumer response and related bandwidth issues, though that explanation seems suspect for such a heavily-funded company.

Elsewhere, a number of iPod-related features are also inactive.  That includes the ability to stream content from an attached iPod, and shuttle purchased tracks directly to devices from any computer through a browser plug-in.