Businessweek has posted an article titled “Apple’s deals may transform digital music”, in which they reveal some new details about Apple’s upcoming online music service. Businessweek’s Brad Stone and Andy Fixmer wrote the following about the music service deal:

Armed with licenses from the music labels and publishers, Apple will be able to scan customers' digital music libraries in iTunes and quickly mirror their collections on its own servers, say three people briefed on the talks. If the sound quality of a particular song on a user's hard drive isn't good enough, Apple will be able to replace it with a higher-quality version. Users of the service will then be able to stream, whenever they want, their songs and albums directly to PCs, iPhones, iPads, and perhaps one-day even cars.
While it may be a huge shift, it won't be free. Apple no doubt has paid dearly for any cloud music licenses, and it's unclear how much of those costs it will eat or pass on to consumers. One possibility would be to bundle an iCloud digital locker into Apple's MobileMe online service, which currently costs $99 a year and synchronizes contacts, e-mail, Web bookmarks, and other user data across multiple devices. Users will be able to store their entire music collections in the cloud—even if they obtained some songs illegally. That would finally give the labels a way to claw out some money on pirated music.

Two important things to note are that Apple will replace low quality songs, for example a 128kbps old download with higher quality version at least for online storage and access. And, second whatever is in your music library whether pirated or not will be available for streaming. If this comes true Apple’s online music service will be really interesting.