Do you use it to showcase your music?
Do you push/pull the media to everyone at the same time? Does it fallback to the last song if it can't reach the server for whatever reason?
No, all the phones will pull the data at a different time, so it should keep the load down from the server. Plus there is a bit of randomness thrown in for good measure.
It doesn't actually fall back to the last song. It caches the current song, but if for some reason the cache doesn't save for some reason. Or if you are offline. Your phone's default ringtone will play.