By: Senior staff writer – Easton Ellsworth

Everybody’s gaga over Lala.

First the Associated Press:

“First a CD-trading site, then a free Web-based music browser, lala.com is being born again. The site is relaunching Tuesday as a hybrid, offering the digital download functionality of iTunes and the free music streaming of MySpace Music without the ads.”

Now TechCrunch:

“Best of all: Lala will give you free, unlimited streaming access to every song in your library, even the ones you’ve acquired in ways that weren’t quite legal.”

Technologizer calls Lala “spectacular” and “amazing.”

I remember Lala’s CD trading period back in 2006. Boooring.

But Lala now has $35 million in funding.

And you can listen to its 6 million tracks for FREE.

Want to buy a song?

That’s easy. It’s just 10 cents – with digital rights management hooked onto it.

Want to strip out the DRM? The song then becomes 89 or 99 cents.

And you can download purchased songs from any computer (but you do have to log in to the site first).

Given that Lala has the blessing of the big four record labels (EMI, Sony, Universal and Warner), plus about 170,000 indie artists and bands, and the proof from a trial run that users buy enough music to sustain its business model, I’d say Lala will be singing for a while.

Have you tried Lala? What do you think of the sustainability of its revenue model?