"The Classical Cloud: The Pleasures and Frustrations of Listening Online," by Alex Ross (cf., The New Yorker, 8 September 2014), discussed this intriguing problem in considerable detail. Of course, the pros and cons can be debated "till tree become stone," and most of the comments from readers dismissed the "disc rot" issue. I suspect we'll hear more of the debate until the market determines the best answer -- or, at least, best temporary resolution, pending the development of new technologies.
The Ross article can be found at: http://www.newyorker.com/magazine/2014/09/08/classical-cloud .
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