Not trying to correct you, just looking for the right word. Digital isn't the right term here, because CDs are also digital. I'm trying to come up with the word for the opposite of physical media, but strangely I can't. Maybe streaming, but how would MP3s on a USB drive fit in?

The issue here is, "physical" is a misleading word. Digital works are also held on physical media. The distinction is whether the work is stored on a dedicated physical object.

Edit: I suppose a jukebox confuses things as I think it belongs in the "physical media" box, but it isn't dedicated to a specific work. Hmm.

Maybe "mediumless" is the right word.

Although, if we want to pedantic: music stored on a hard disk is still stored on a medium, but you can't pop the hard drive into any old player and play the music.

Ethereal, Ephemeral?

I know what you mean but I can't think of any word that describes the concept (without requiring further elaboration).

"physical media" is an inaccurate, redundant, phrase.