They are not starting a streaming music service, they purchased MOG, which is already well established and available in stand alone software for both PC and Mac, Android, iOS, and for Sonos and Squeezebox units.
I use both MOG and Spotify, and each have their own strengths and annoyances. Spotify is the clear leader in subscriber numbers, being available to most Europeans for years before coming to the US, and it looks like the ace marketing team at HTC-owned Beats might help to get MOG better recognition with more polish and integration options.
The music library is robust and sound quality is first rate with solid 320 kbps streams. It is like having a record store in my pocket. I hope this will be a successful acquisition and a step closer to my dream of having a lossless streaming music subscription service some day.