The service will be expanded to Windows software-based computers and tablets, including the upcoming Surface tablet, from October 26, when Microsoft launches Windows 8. It will be expanded to phones shortly after that.
About 18 months ago, the company realized that Xbox users were spending half to 60 percent of their time on entertainment services rather than video gaming, Xbox Music general manager Jerry Johnson said.
The market-leading video game console already streams Netflix, ESPN and other channels and is bolstering its service with music and other video content.
"We also realize, as an entertainment company, that music is an important ingredient on its own and as a part of different user experiences," Johnson said.
Xbox Music replaces Microsoft's digital media brand Zune that struggled to compete with iTunes. Microsoft will offer a free ad-supported music streaming service, and a premium $9.99 subscription service for unlimited, ad-free streaming.
Source: Reuters