Sony will unveil their Digital Locker later this year. BMG has MusicBank. If the only way you can get a license is if you contribute a very large catalogue of music that you trade with other music companies, then online companies won't be able to play. Companies like Muzak are in rights hearings right now with publishers about how much royalties they need to pay. I'm here to tell you if they are still debating the rights that Muzak has to pay, then the digital music space is in for a very long and trying time.
Some music is going to be free, just like some television is free through network television.
I also think there will be a subscription model. I don't think you'll be paying the labels a subscription fee. You're more likely going to be paying a cable company, for example. You don't pay HBO and Showtime directly, you pay your local cable company and they pass on a certain percentage of the fees to content owners. The judge isn't going to rule.