I agree about Spotify being good value, especially if you use it on your iPhone. I'm a huge music fan too (mainly classical) and my Spotify subscription was the one thing I never considered cutting even when I had very little money. I don't know about the playlists though; you can probably find an answer online.
I bought my son spotify premium, a one month trial. What happens if he doesn't carry on the subscription? Does he lose all his playlists? We have to do something, itunes is costing a fortune! he mainly listens on his iPhone. Help its costing us tooooo much, but we want to encourage hsi great choice of music!