In 1896, Thaddeus Cahill filed a patent on the “art of and apparatus for generating and distributing music electronically” and until 1914 he fed music signals down AT&T’s telephone lines with his Telharmoniums apparatus.
Elisha Gray transmitted music over a telephone line in 1876 . He also invented the first electronic music instrument in 1874, calling it the “Musical Telegraph,” for which he was awarded US Patent 166,096 titled “Electric Telegraph for Transmitting Musical Tones” on July 27, 1875.
Wilmington, Delaware, is enjoying a novel service through the telephone exchange. Phonograph music is supplied over the wires to those subscribers who sign up for the service. Attached to the wall near the telephone is a box containing a special receiver, adapted to throw out a large volume of sound into the room. A megaphone may be attached whenever service is to be given. The box is attached to the line wires by a bridged tap from the line circuit. At the central office, the lines of musical subscribers are tapped to a manual board attended by an operator. A number of phonographs are available, and a representative assortment of records kept on hand.
Elisha Gray transmitted music over a telephone line in 1876 . He also invented the first electronic music instrument in 1874, calling it the “Musical Telegraph,” for which he was awarded US Patent 166,096 titled “Electric Telegraph for Transmitting Musical Tones” on July 27, 1875.
http://didyouknow.org/gray/
Commercial service:
Wilmington, Delaware, is enjoying a novel service through the telephone exchange. Phonograph music is supplied over the wires to those subscribers who sign up for the service. Attached to the wall near the telephone is a box containing a special receiver, adapted to throw out a large volume of sound into the room. A megaphone may be attached whenever service is to be given. The box is attached to the line wires by a bridged tap from the line circuit. At the central office, the lines of musical subscribers are tapped to a manual board attended by an operator. A number of phonographs are available, and a representative assortment of records kept on hand.
3c for a piece, 7c for a grand opera !
Telephony, December 18, 1909
http://earlyradiohistory.us/1909musi.htm
Of course recording technology wasn't good enough to make copies, so these were not distribution services but rather stream on demand.