This is the way it is said to work. Whether it changes or not, who knows. Right now it seems too good to be true IMO. Well minus the streaming capabilities, which would be nice, but to be honest, I really do not need. My library is 125GB and it fits on my iPod Classic just fine.
Anyways, as stated it does not stream. Music in your library is scanned (much like scanning for Genius,maybe), and the metadata that it matches is then released to the cloud whereby it DOES NOT upload the scanned and matched media, but uses the data collected to allow access to those songs on the cloud. Its much like renting a movie on iTunes; once it is paid for, you are allowed to watch it. In this scenario, once you have paid for iTunes Match and scanned your library, those matched songs will then be available to you on the cloud much like the movie you rented is made available to you.
Any songs that are not matched will be uploaded. I am sure you have a choice as to whether said to upload said song(s) or not. Many people are asking questions about the most basic of processes. Im sure Apple is not going to leave out such core functionalities. What then would be the point in the service?
The question remains, what happens to all of your shared, downloaded, and pirated music? I dont believe it matters. At least not from what we have heard thus far. It seems that anything in our library that can be matched will be available on the cloud. Ill get back to this
It also seems that once our yearly subscription is up we would lose the ability to download those songs from the cloud. Thus, we would have to purchase it again a year from now to maintain access. That does not however take away from the fact that we could sign up, legitimize all of our music, download the now legal copies in iTunes Plus quality, and a year from now not renew. The music that is downloaded from the cloud is DRM free, therefore once it is on a device it is yours forever.
To the cloud. Its my understanding that in iOS5, the cloud will just work. Its supposed to be simple. All of our matched and uploaded iTunes music will be there available to download on any of our devices --iPads, iPods, Macbooks, PCs, etc. Everything is just there. Thats what cloud computing is. If for instance, we download the new Lady Gaga song on our PC or Macbook, by the time the download has completed on that device it is ready on our iPad or iPod, assuming we purchased it from the iTunes store. If we purchased or downloaded illegally from another venue, I assume that iTunes will have to be scanned for new music, but will then be available on iCloud.
Content is not necessarily physically downloaded to the device, but it is ready to be downloaded at the click of a button should you so choose to do so. Again, this is my understanding. You can however choose to have it automatically downloaded. It seems that both options will be available.
Finally, this is the one thing that I do not understand. Say a new Bruno Mars song is played on American Idol. It becomes all the rage. Many people will download it on iTunes, but what about those of us with iTunes Match service. For us, we could go download a version off of Mediafire or some other file sharing service, torrent, etc, have iTunes scan our library, it finds the song, then the song is available for us to download in iTunes Plus quality on the cloud. So technically we are getting the song for nearly nothing, that many others are paying $1.29 for.
How can they stop the general public from doing this? Will people realize they can do this? Or does it even matter? Would those people who are going to buy it, buy it anyway, and those that are going to pirate, pirate anyway? Is this the conclusion that Apple come to, and $omehow got the record companies on board with this? That is my main question concerning this service, because what we know of it thus far leads me to believe that it can be abused quite easily, but at the end of the day the record companies are getting some money now, for those of us that will sign up (and I think many will) where in the past they were getting nothing,