His idea is not technically feasible at this time. There is not enough spectrum space available to feed customized media streams to millions of people at once. The cellphone network is particularly weak in this area - let there be some emergency in a city and instantly all cellphones become useless when everyone tries to use them at once. (Remember 911?) The phone system is designed from end to end on the assumption that only a fraction of the subscribers are using the service at the same time.

Satellite radio is also very short on bandwidth. The two current services each have 100 channels of programming, of which 60 each is music. The remaining 40 talk channels are so processed and compressed to fit in what's left that they are actually distorted.

Also, can you imagine the size of the server farm it would take to stream several million 128 kb/s MP3 streams at the same time? That is 256 gigabits per second. You could do it with a massively distributed database with thousands of servers scattered around the country, but it would be awfully expensive.

The cost of additional infrastructure is too expensive to put in place just to serve the music industry.

I'm not saying it couldn't be done, but it can't be done real-time with today's infrastructure. And once you go to a download and play multiple times model you have to start worrying about somebody cheating, though there are models for this. A satellite TV receiver will let you watch a PPV movie as long as it has an "account balance". It checks in to the central DB once a month to update the records for billing and get a new balance.