Microsoft plans on launching its own Music Streaming service by the end of this month (July) which will offer  music streaming (ala Spotify) and has been hinted to include Xbox 360 Consoles in availability. Peter Bale of MSN (Microsoft’s News) told The Telegraph how it will:

It will be a similar principle to Spotify but we are still examining how the business model will work.

It is expected that Microsofts new product will offers free music streaming with advertisements aswell as a monthly subscription (£9.99) in the same way that Spotify does. The new streaming service will be promoted through MSN and the rest of the Microsoft network. Whether this includes Zune users or whether it will tie in with the Zune Pass is still unconfirmed, but with the way things are looking and where the gaps in the market are for Microsoft, linking together this new service, Xbox 360 & Zune would not only increase market but also help Microsoft “to make its Xbox 360 console the main “entertainment hub” in the family home”.

No download partner has been signed yet but Microsoft is in discussions with several companies. Spotify’s download partner is 7digital and is in the process of offering one-click to own functionality.

With the Zune Pass and the upcoming Music Streaming service, Microsoft could quite easily leapfrog Spotify, who currently dominate this market, by the end of the month.

[the telegraph.co.uk]