I could make a case for all three, but ultimately I think #3 is most likely, given that Lala did it.

The key: Lala’s song-identification-and-upload technologies (also discontinued as of today) allowed users to mirror their local music -- including an iTunes library -- onto cloud-based Lala accounts. -- http://www.wired.com/epicenter/2010/04/apple-kills-lala-musi...