Microsoft is planning to launch a Spotify-style music-streaming service later this month, says a new report in The Telegraph. Looks like it might be heading to Xbox 360 too...

MSN news and entertainment exec producer, Peter Bale, is the man with the message, telling the Telegraph:

“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 itself is a free service that allows users to listen to untold squillions of live streaming tracks that are interrupted by the occasional radio-style advert. Alternatively, the payment of a small monthly fee ensures no such commercial intrusions. That’s your business model right there, Mr Bale.

Anyhoo, the MS version would be owned and operated by Microsoft and promoted through its various network channels – the Xbox 360 simply has to be a part of that mix, especially given Microsoft’s stated ambition to make its next-gen console the central hub of the home entertainment, er, wheel. Bale apparently hints as much too, although he wouldn’t be drawn on the specifics.

It all sounds very promising, doesn’t it. We’d like to think that a company of Microsoft’s gargantuan size and immense clout would be able to put together a service that’s even bigger and better than Spotify too. We’ll be keeping any eye on MSN and Xbox LIVE to see how this develops. Meantime there’s the impending launch of Last.fm on Xbox LIVE to look forward to.