Consider that you pay 99c per track on iTunes per music download, they are then stored (DRM protected) on your HDD (or your iPod). If you somehow lose those files, they are lost forever and it's just tough luck for the consumer as far as Apple is concerned. With the new distribution system, you are guaranteed not to lose your content. Also, purchased content will not fill up a user's hard disc drive either since it will be stored on Apple's servers.
However, in this case for consumers, the bad may outweigh the good. Consumers generally prefer to have a product, even if it is just data stored on a HDD, it still gives some feeling of ownership. This new system seems more restrictive than helpful, and I think most users here would agree it would be undesirable to see systems like this dominate media content purchasing in future?
Source:
Think Secret