Since iTunes allows you to use music you got from any location, it would make most sense to go with option two. This would be consistent with the manner in whic

Since iTunes allows you to use music you got from any location, it would make most sense to go with option two. This would be consistent with the manner in which Apple allows customers to use iTunes currently. If they choose option 3, their servers would probably be overloaded immediately, an embarrassment which hampered the launch of MobileMe[1]. Apple won't want to risk this. I doubt if there would be much uptake of the service if it were iTunes-purchased music only. Piracy aside, what about music that you bought legally from legit sources? [1] http://tech.fortune.cnn.com/2011/05/09/inside-apple/ http://tech.fortune.cnn.com/2011/05/09/inside-apple/ EDIT: there would probably be some limit that you could use for free (e.g. 10GB), but beyond this there would be a monthly fee, à la Dropbox.