Apple says the leaked developer demo of iTunes Match streaming is not what it seems.
Yesterday reports appeared that the iTunes Match feature coming to the iCloud this fall is also supporting streaming of your music library. There have been videos leaked from the developer release that suggest that. Apple saw the need to clarify and confirm what they said at the unveiling of the iTunes in the iCloud music locker service. AllThingsD reports that Apple describes what we see in the video as simultaneous listen and download.
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What that means is that the files you want to listen from the iCloud gets downloaded entirely to your device. Like in iTunes today you can already play it while its downloading. So real live streaming is still not an option in the upcoming iCloud as Apple said in the beginning. It also depends on how you really define live streaming. MacRumors argues that the way Apple has implemented the listen while downloading could also be called streaming.
AllThingsD says that Apple has the rights secured from the music labels to enable streaming, but is holding off due to bandwidth concerns on 3G networks.
In the end what matters is that the service works well and fast. Touch a track and boom, it plays. How that works in the background, most consumers will not care about.