I use Spotify via my phone with Bluetooth. Works great. I chose Spotify because they seem to have the broadest selection of music available.
I recently got a new phone and added a large SD card, so I downloaded all my music with their "extreme" option simply because I had plenty of space to do so.
I haven't noticed any difference in sound quality in my Z. I haven't used the phone with enough other Bluetooth speakers yet to tell if it makes a discernible difference there. I doubt that, inside a moving Z, differences in bitrates will make a noticeable difference.
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