That is correct. Whilst both streaming and downloading digital purchases involve transferring data across the internet the current Rhapsody does not store the file locally.

The key differentiator for Tidal is that content is optionally stored locally when you first access it. This means that potentially you have that content for as long as you pay the Tidal fee...avoiding the need to always use the bandwidth to play the same album.

This really feels like a new business model. I haven't subscribed yet as I have no convenient way to use without system integration. However, everyone I have spoken to so far has been very positive about the experience.

Rgds,
Nick