I welcome the competition, but to challenge iTunes, the new service will have to provide not only the music, but album cover artwork.
iTunes in the UK is hideously overpriced, but (and I hate to say this) the interface is superb. There is no other music provider to challenge it (for now).;
I think it's going to be a case of 'wait and see'.
Incidentally - most modern music is not worth more than �3 per album.
In my day you had quality music. Not the rubbish you hear in the charts nowadays (there...I've finally become my father).