Apple recently pushed a new version of their iDisk software, quietly mentioning the ability to play music files from remote storage in the background. What this means is that any MP3 or AAC files stored in your iDisk account can now be played on your devices while you use other apps. This makes streaming practical from Apple's online storage.
This is not 'iTunes in the cloud' but it's definitely moving in that direction. One company sure to be miffed is Universal Music Group, who has told net companies that streaming music requires entering into a license and paying a per stream fee. Apple's service allows unlimited sharing and now background streaming — all without a license from record labels.
Behind the scenes Apple is battling the labels over licensing issues for their future cloud iTunes service. If they can stream files to PCs and portable devices without a license, that is the foundation for a cloud-based iTunes service.
--MR
