distribution comes with time and marketing, about licenses - I would be interested to know more, if you can provide any links or share your experience...I think major part of development of such app would be legalization or licensing part.
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I don't want to reveal details. However, as to license issues - the real problem is in the fact that there is no good license scheme for things "deposited" in blockchain. It's because there is no way to remove anything from bc thus no action upon infringement can be made. This leads to whole bunch of legal issues in both developing (shielding creator) and running such bc. Especially nodes can be exposed to legal risks. Actually I have a scheme that solves some issues in this respect, but it requires further development.
I don't think you should hold music itself on blockchain, only hash of its origin should suffice to confirm the owner. And yes it is interesting to solve these type challenges to connect blockchain more with real world solutions.
Sure you can hold only a hash. But this way opens also a wide array of possible abuses (linking to top hits, taking fees for non playable media and many more; most can be mitigated, but still no ideal solution). Keeping data in chain or in chain-like structure layered on chain provides paradoxically means to evade accusations from top labels - this way one can safeguard own creation in best way possible.
So, again, no good solution solving all issues, either with storing hash or full data.
Connecting bc to real world solution is still far from being realistic and reliable - in large scale of course. Because bc has inherent drawbacks that block wide adoption.