Bloomberg: Xbox Music to be a Spotify-like service with an online locker

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 Microsoft’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 “people in the know” are saying Microsoft is negotiating with Vivendi SA (VIV)’s Universal Music Group,  Warner Music Group, Sony Corp.’s music division, all based in New York, and Citigroup’s London-based EMI, the people said.

Bloomberg did not reveal the one feature which would differentiate the move from Microsoft’s earlier efforts – whether the client will be cross-platform or not, but given Microsoft’s recent moves this does seem likely.

Microsoft and the four music companies declined to comment.

Read more at Bloomberg here.