The site is not accepting new users, and current users will receive iTunes credit to the amount of their Lala Web song purchases and remaining balances. Users who have downloaded songs from Lala will still be able to play them.
Some are speculating that Apple, which acquired Lala six months ago, is shutting the site down now because it's using the site's streaming technology to launch a Web-based version of iTunes -- possibly as soon as this June.
Of course, others are more cautious. MediaMemo's Peter Kafka says Apple is talking with music labels about a Web-based iTunes, but the talks are still preliminary.
In other news:
— Erin Barker, Digital Content Reporter, Light Reading Cable