so the studios are double dipping? I purchase the music then they want more money after I purchased the music so I can have my music I purchased on the cloud? Why would apple even agree to pay them twice if they already get money from the songs purchased on itunes? Apple should have just done it without them like amazon and google did.
My guess: iCloud's music feature will not be primarily for storage. Apple wants to allow users to (1) download and sync tracks to multiple devices, and (2) stream tracks to devices, and the current license agreements did not allow for either of those features.
I hope Apple went one step further and worked out subscription agreements with the labels that would allow users to continue downloading albums and single tracks at current pricing but would add a subscription plan for $9.99-$14.99 a month for users who want access to the full catalog.
The story a few weeks ago about Apple applying to patent a system for storing the first few seconds of a track on a device and then switch to streaming after the buffer catches up makes perfect sense for subscription plans; you download a short placeholder track to use for managing playlists, but you never have to download the actual track.