Rdio, on the other hand, just got smote.
RDio is still a much better option than iTunes, Google Music or the Amazon music locker, IMO.
More importantly, Rdio already had a lot of noise it had to spend money to cut through. What happens to their cost of customer acquisition after iCloud and iTunes Match?
Granted, I have terrible taste in music (TERRIBLE), and maybe somebody who is a bit more sophisticated will have a better experience with iTunes. For me though, Rdio answers the desire: I can listen to any song I want wherever I want whenever I want, with one flat monthly fee.
iTunes can't do that. With iTunes, I can listen to a song I want, between 5-20 minutes from now, unless I've purchased it already. And synced it. Cloud or computer, what's dumb about apple's solution is that as far as I know, they haven't taken the sync out of the equation. You're just syncing with the cloud rather than your computer.
Before this announcement, Rdio had a huge value proposition even for normal people: instant access to all the music in their collection from multiple devices. Now iTMS has the same offering, for less money, and with better integration into every platform normal people play music on.
Often times I'll be somewhere remote and want to listen to an album I haven't listened to in months. Without having to download each file first, Rdio starts playing instantly.
I wouldn't be worried at all.
I also can't share folders of documents relating to a particular project. As a web designer, I might have a PSD for the design, some Word docs for the copy, a PDF of some flyer I have to convert to a web page, and a Keynote presentation to pitch a particular feature to management. With iCloud, I can't view these documents as one collective project. Files are stored per application, not per project.
Dropbox does all of this today, without the need for my applications to be updated or me to rethink how I store files. I think they're going to be just fine.
iCloud might win in the long term, but for now they address fundamentally different problems.
That said, if this were to force Dropbox to drop their prices, I wouldn't be unhappy...
Currently all major players are competing on who manages to build the most closed ecosystem. I hope this is a phase that will pass.