This is great, but how did Amazon manage to pull this off? Are we effectively buying three products when we buy an AutoRip CD? (1) The physical CD, (2) The streaming rights for Amazon cloud player, (3) The MP3s which you can download from the cloud player. Is this a legal way to purchase a CD and gift it to a friend or resell it and still maintain the streaming/MP3 rights? Or does the RIAA have a problem with that?

Shrink-wrapped CDs I have gifted friends and family years ago are now showing up in my cloud player. I have to admit that feels a little weird. How is that different than if I opened the CD and burned it before gifting it?