This is an extract of one of the replies I wrote on a Techcrunch post.
I do not think $9.99 a month is ridiculous for unlimited streaming and caching of content @ 320 kbps OGG Vorbis compression. It is a heck of a deal for the quality offered and the quantity of music, including some rarities and remixes that are sold at over $1.29 per track on Amazon.
I undestand some people like to own and Spotify will not satisfy that requirement. However, it allows you to listen to all types of music, including new content that is published almost on a daily basis in high quality (that last is very important for me), and then you can decide if purchasing it for life is a good option (Amazon, GMusic, iTunes, whatever).
This is my take about purchasing music. First. Very limited content is available in loss-less format. If I am going to pay, might as well be for the best quality available. Second. You cannot resell digital content legally. You take the music with you until your next life.
I have playlists totaling over 5,000 songs in Spotify. I listen to them randomly anytime, anywhere. And continuously add new content. I would be out of my mind if I were to spend $5K in music. $9.99 a month sounds good enough. Good for 41 years worth of music service, and that is if I do not add more songs to Spotify. Unbeatable.
Convenience wins. iCloud you might say? Wrong. You can’t stream with iCloud. You need to have a local copy of the track on the device you will play back.