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Xbox Music to offer free music streaming, launches this month - report

Subscription-based and ad-funded models directly target Spotify.

Microsoft will launch its streaming Xbox Music service on October 26th, a new report suggests.

Xbox Music is set to follow a Spotify-style business model - free, ad-funded access will be supplemented by add-free paid-for subscriptions, The Verge reported.

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Designed for Windows Phone and Windows 8 devices as well as Xbox 360, users will be able to store music and playlists in the cloud using Microsoft SkyDrive.

Xbox 360 gamers will receive the new service in an impending dashboard update.

iOS and Android support is also on the way, although apps may take some time to appear.

Xbox Music has been in the pipeline for some time. Earlier this year, reports suggested the service would offer iTunes-style downloading and online storage features, as well as Spotify-style streaming.

Users of Microsoft's failed Zune service will be migrated over to the new platform.