You say it was expected, yet I heard no one predict it.
It was also known that apple where buying into this space. Will see if I can find the reference.
And I will make another prediction. Apple will have to take on Spotify once they reach momentum in the US (and I think they will with time)
In other words iTunes music is going to turn into a streaming music service at some point.
None the less I believe music will go streaming, it has to which becomes really obvious once you try out spotify (well it did for me and most of my friends who use it)
An interesting thought is whether they'd experiment with the rental model (pay per play) for iTunes music. Not just interesting economically but in terms of how appreciation of music might change.
You're thinking of the LaLa acquisition, maybe? http://www.wired.com/epicenter/2010/04/apple-kills-lala-musi...
http://www.wired.com/epicenter/2009/12/apples-reported-lala-...