Yes. That's correct. Apple has (had?) their own "MP3." I guess I associate actual MP3's with Apple, because of the iPod. iPods (especially later models) could store many lossless files, but people were more interested in storing and carrying their ENTIRE music collections with them. The MP3 really enabled the iPod I guess, not the other way around. They're just so closely linked and no doubt fed the growth of eachother.
Anyway...this is all good stuff. CD quality should be the absolute minimum we all listen too, buy, stream, whatever and it appears it is going to happen.
I'm with GrooveControl. I actually listen to Spotify quite a bit too, primarily for background tunes while I work. I like the selection of music and convenience. I know it isn't amazing quality, though some music sounds surprisingly good. I'm looking forward to it getting better (hopefully very very soon).