Like maybe record labels have been trying to bend Apple over a barrel when they ask for streaming rights, and in this deal, Apple acquires the streaming rights that Beats had, thereby side-stepping the deal.
Yes. You hit the nail on its head. Beats music is a direct derivative of MOG, and they had a 16 million track music catalog. Apple is already in the music on demand business and subscription music service is the next logical evolution. This subscription service will be wholly incorporated into iTunes, and $10/mo will get you access to 16 million iTunes tracks. You'll of course still have the option to buy the track, but who would what to do that? The record label's royalties are going to be significantly impacted. This was a smart move by Apple, they've just cornered the online music market for the next decade.