[drharris]

Storage is cheap with digital music. Even assuming 10 MB/song, you're looking at 40TB, less than $4k/mo on S3. It's not trivial, but it's probably a drop in the bucket compared to their other costs. Realistically the file sizes are much less than 10MB.

[janinge]

They have multiple encodes in various qualities for each title too, though.

[lotyrin]

Do they produce these from the source audio before they're listened to though?