I think this is something different. I heard about this last week but it didn't mention anything about HP being involves. It's a service where you choose songs and have it burnt onto a CD while you drink your coffee. Nothing really to do with digital downloads. It will probably be an entry to test the waters before moving into the music download arena, where they might JUST possibly partner with Apple/HP and go the AAC route?!
Very pricy also. I didn't see anything relating to iTunes in the article. guess HP is trying to make a dent in an untapped area. kinda like going to Barnes & Noble and reading books in the cafe while having a latté then never buying the book. But $6.95 for 5 songs? I'd rather sit down and browse iTunes with maybe with a discount coupon from Starbucks (you know a little punch card that gives you 10% off 10 songs after 10 cups of java) and download digital, and call it "iStarbucks".