Bloomberg is reporting that Xbox Music is set to launch with the best features of all the competing music services, offering streaming, music purchases and online lockers, which would allow users to stream music they uploaded to Microsoftâ€™s servers.
Presumably the music locker service will be powered by SkyDrive, meaning a free level of service should be supported for current Windows Phone owners.
Unnamed â€œpeople in the knowâ€ are saying Microsoft is negotiating with Vivendi SA (VIV)â€™s Universal Music Group, Warner Music Group, Sony Corp.â€™s music division, all based in New York, and Citigroupâ€™s London-based EMI, the people said.
Bloomberg did not reveal the one feature which would differentiate the move from Microsoftâ€™s earlier efforts â€“ whether the client will be cross-platform or not, but given Microsoftâ€™s recent moves this does seem likely.
Microsoft and the four music companies declined to comment.
Read more at Bloomberg here.