Quite amusing really, they almost seem to have claimed to invent a thing called "Radio"!.
The next step, as you say, is actually pointed out by the article, which I think will happen, not only in renting music, I think that car rental will grow and grow. I see little point in owning one and hire when one is required. It has actually saved quite a lot of money much to my surprise, allways brand new, clean and with a super music system.

So who's going to come up with this and how many labels will want to play along?

That's always the problem with these kind of things, they all want their own version and/or cannot agree as a whole. Nobody wants to pay multiple subscriptions