Lala, the Peerflix clone for music CDs recently raised $9 million, and it is not a slam dunk, which makes you wonder why so much cash. Rags Gupta sums it up on his blog when he says, “it’s much easier for users to rip a CD to their hard drive and then exchange it than do the same with DVDs. $9 Million is a really large Series A. Either La la has some serious capital requirements or the VCs really needed to put money to work, or maybe I’m missing something.” No Rags you are not missing anything – remember Bain is the same firm that deployed money in Vonage. Enough said.
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I tried Lala and am a peerflx member, totally different. Om, have you tried both? also didn’t Bain also engineer the Warner Music deal? maybe they know something you don’t