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Startup La la, a virtual place where consumers can meet to trade their used CDs, has as one of its board members Geoff Ralston, former chief product officer for Yahoo! Ralston's own record collection has grown quite a bit over the last six months (more than in the past 15 years), he says. La la has elements of My Space, Netflix, eBay, and iTunes, allowing users to list online the CDs they have and those that they want. They also touch base with those who have the same taste in music. When one user requests a CD owned by another person, the owner puts the CD in the mail in a prepaid envelope. The receiver is billed a fee plus shipping, and the shipper pays nothing. The service is being tested at a time when the Recording Industry Association of America recently filed another spate of lawsuits against 750 people that the association contends stole music online. La la is interested not only in customers who want to hear all digital media, but also those who want media that is hard plastic. La la offers customers access to about 1.8 million albums, more than the number available on iTunes and in local stores. La la also wants to create communities of those who enjoy the same music and wants to improve on iTunes, says Bill Nguyen, co-founder. According to NPD Group, just over 50% of consumers buy CDs, but about 16% use illegal file-sharing networks and about 4% download music legally on such services as iTunes.
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