Microsoft making a Spotify clone

In Microsoft's continuing quest for a piece of the entertainment business, streaming music is next.

The company will launch a streaming music service in the U.K. by the end of this month, the Telegraph reports. It will be similar to that of Spotify (pictured), which offers free, ad-supported streams, but also sells music downloads.

Comparisons to Spotify aren't my own, but those of MSN executive producer Peter Bale. “We are looking at launching a music streaming service imminently," he said. "It will be a similar principle to Spotify but we are still examining how the business model will work."

At the risk of sounding snarky, I'd worry about any business model that hasn't been fully baked less than a month from launch. Nonetheless, Bale said the company is looking at other businesses as well to determine what's best for Microsoft. MSN and other parts of the company network will promote the service.

Perhaps most interesting in the Telegraph's report is Bale's hints of a tie-in to the Xbox 360, though he wouldn't elaborate. Microsoft announced plans to bring Last.fm, an Internet radio station, to the console, so I'd be surprised to see the company supporting another streaming service so suddenly. The story doesn't mention the Zune HD at all, which is puzzling. Support for the service in Microsoft's upcoming device seems like a no-brainer.

There's no word on whether Microsoft's service will be offered outside of the U.K., but seeing as it's so similar to Spotify, I suppose either will do.

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