Apple seem to believe what you’re talking about is supported via Home Sharing [1]. I have attempted to get this to work with a little success but I wonder if it was too little too late for you?
For some reasons, which I don't recall, it was supposed to be some - not all - music from my original CDs, ripped by me under law allowing to have digital copies of owned audio CDs.
Even for a family for instance, it means they'd all have to share the same ID, which would be a royal PITA, especially if you're setting parental controls for the kids.