It seems like Xbox Music will include a free (ad-supported) option similar to what users have with Spotify. This service will be available on Windows 8 devices to at the beginning and would probably make its way to the rest of the ecosystem.
Windows Phone 8 devices will also have access to Xbox Music when it launches, but currently, it doesn’t look like the service will be available on the Windows Phone 7 platform. We aren't certain if Microsoft has plans to bring the service in some form to their Windows Phone 7.8 update which is due to arrive on existing Windows Phones sometime.
Xbox users will also get access to nearly 70,000 music videos similar to what's offered through VEVO. In terms of music, users will get access to a generous 30 million music catalog which is comparable to services to Apple’s iTunes or Google Play. The catalog will editor recommendations, trending songs and a host of cross-platform functionality like syncing playlists etc.
Microsoft also plans to offer more features over the course of next year including social network integration, scan-to-match and cloud-based storage option which would be separate from SkyDrive. Microsoft is even thinking of offering Android and iOS clients within the year.
source – The Verge
