Interesting, I didn't know about Seeburg. Funnily enough, this business model is even older: https://en.m.wikipedia.org/wiki/Telharmonium
"As early as 1906, the Cahill Telharmonium Company of New York attempted to sell musical entertainment (produced by Dr. Thaddeus Cahill's "Telharmonium," an early synthesizer) to subscribers through the telephone"
The business failed miserably, but the Telharmonium is remembered as an early electronic music instrument.