Earlier this week we noticed that Facebook no longer has music in their gift shop, a feature that was relatively popular among Facebook users. According to a Facebook spokesperson, the service was pulled as part of Apple’s decision to shut down Lala on May 31st. While pundits have speculated about the reason behind Lala being shut down, many Facebook users don’t care what the reason is as they are disappointed that music has disappeared from the gift shop.
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A Facebook music service has been rumored about for three years now, but according to Brad Stone, the first official integration with Facebook will come from Lala who will integrate the service into the Facebook gift store. This comes as news of a partnership between Lala, iLike, and Google first surfaced this morning.
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Facebook Music may have taken yet another setback. According to TechCrunch, more details may have arisen regarding the deal (or lack thereof) that Facebook was trying to work out with a number of music companies as options for offering a Facebook Music app direct to its users.

We covered the rumor that Lala may be the runner-up for landing a music partnership with Facebook, and I then noted that its smaller size may be a benefit for teaming with the large social network. It benefits Facebook and could be a more economic route for both parties involved. But maybe not so beneficial for the music companies, which includes lone hold-out Warner.
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Lala is a small music streaming service in comparison to more prominent sites like Last.fm, but Eric Eldon reports that Lala may be leading the bid for a partnership with Facebook for a streaming music option.

Having an integrated streaming music service is something Facebook has been planning for some time, and has reportedly been feeling out a number of music services including Project Playlist for a partnership. What Facebook wants is an on-demand streaming music offering that’s similar to MySpace Music. But as VentureBeat points out, that’s not the type of service Lala currently has.
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