Business Matters is a daily column that offers insight, analysis and opinion on the day's news.

-- Apple's acquisition of Lala: What it might mean for both iTunes and record labels? Lala executives will be in "very significant roles," according to a source in the Wall Street Journal. Record execs are said to be both optimistic of what could come of iTunes but (not surprisingly) wary of Apple gaining more market power. (Wall Street Journal)

-- Vevo's sluggish launch is not necessarily a disaster, said MediaMemo's Peter Kafka. Most people will see Vevo videos at YouTube. Wrote Kafka, "When you read about Vevo launching with 400 million video views in the first month, the majority of those aren't coming from the new site, but from YouTubers who are watching music clips the same way that they always do - on YouTube. But Vevo will get credit for those eyeballs, and any ad dollars they generate." Vevo's integration with YouTube does have a significant angle beyond additional eyeballs: the effect on the brand. When people watch Vevo videos at YouTube, Vevo is not becoming a destination. To realize the vision of its founders, the site will need to build its own identity and its own relationships with viewers. YouTube should be more of a springboard than a host. (MediaMemo)

-- In the UK, ISP Virgin Media has started a trial of technology that allows it to inspect the data passing through its network. The goal is to gauge the amount of piracy on its network. The technology looks for data being transferred using file sharing protocols. IP addresses will be stripped from each data packet, so Virgin will not be able to identify the source of the data. While this is not an effort to police its users, the trial should give Virgin an idea of what amount of traffic infringes content owners' copyright. It should be noted that Virgin is also working on an unlimited MP3 download service that should launch in 2010. It stands to reason that an ISP seeking to build a music service would have to address content owners' concerns over piracy on its network. (NewScientist)

-- Spotify has a new release for Android that runs on the new Motorola Droid phone. (Spotify blog)

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