Xbox Music will offer streaming, downloading and online storage similar to features already available on iTunes and Spotify, according to this Bloomberg report.
The service, which was announced at E3, will go live later this year.
Despite the closeness of launch, Bloomberg’s sources said that negotiations between Microsoft and major record firms are still ongoing over rights issues.
Microsoft is currently in talks with Vivendi SA’s Universal Music Group, billionaire Len Blavatnik’s Warner Music Group, Sony Corp’s music division and EMI.
Xbox Music will supposedly offer monthly and annual subscriptions for streaming, a service similar to that currently supplied by Spotify. Straight sales will also feature, much in the same line as iTunes.
In addition, Microsoft is set to offer Xbox Music users an “online locker,” accessible by multiple mobile devices running Windows 8, where they can put entire collections online, including music purchased elsewhere, for a monthly or annual fee.
Xbox Music was announced at E3 on June 4.