Multiple iPhones on my account

So I have three iPhones (4') on my iTunes account. I'm the parent so I pay - LOL. Over many years myself, and my two kids have bought a massive amount of music, TV shows and movies and Apps - I mean a lot.
They each have their own MacBooks that before iCloud, they used to buy and maintain/sync their devices with the content they bought on their computers using my account - money
Now with iCloud I set up my iPhone 4 last night with iOS5. Entered my iTubes account on my iMac and then created a iCloud?Me  email. All workds great, syncing cloud wise.
My Questions is - can each kid do the same using the MY main iTines account email - but create a NEW iCloud/Me email for use on their iPhone4's? Or once they input the iTubes account email - their phones will be setup with all my email, COntacts and ical stuff by default?
Or do they need to setup now their own iTunes account in order to use iCloud? But if they do this all the content we have bought will not be available to them right?
Hope this makes sense?
Thanks

solved

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