MySpace Music, Portability and Revenue Streams

Was reading this very good interview with MySpace CEO and co-founder Chris DeWolfe in Wired and this quote caught my eye:

“It’s not just a download service — it’s a service that marries the largest music community with the most comprehensive catalog of music online. Users can discover and consume virtually any piece of music for free on the internet, or if they want to make it portable they can buy it…. ”

My question is, if the question of ownership is linked to “portability” where is the line between steaming and portable?  If you have an iPhone or Touch you could be streaming MySpace Music while walking down the street.  That seems pretty portable.  But if someone with an older iPod wants to listen to that song while they walk down the street they have to pay for it.

Once wifi is everywhere (or whatever replaces wifi) what difference will it make if something is streamed or stored locally?

This seems like another misundertanding of the digital age from the music industry and led by MySpace.

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