Microsoft set to launch a music streaming service this month

The Telegraph is exclusively reporting that Microsoft is planning to launch a streaming music service, similar to Spotify, later this month.

The service will allow users to stream music for free and also download to own. Peter Bale, executive producer of MSN, Microsoft's news and entertainment portal, told The Telegraph exclusively: "Music is an important area for Microsoft. We are looking at launching a music streaming service imminently. It will be a similar principle to Spotify but we are still examining how the business model will work."

Spotify users can stream tracks for free from the web service which is supported by advertising. If a user pays for a Spotify subscription then for £9.99 a month those tracks will not be interrupted by advertising.

Bale also hinted that the service could be tied in with Microsoft's Xbox gaming network, Xbox Live, but would not confirm how Microsoft would link the services. It's not yet clear what Microsoft will charge for the service and whether there will be an ad-supported service at no charge.