Microsoft Corporation is believed to be launching a new music service according to CNET. The music service would supply music to the Xbox console and an upcoming Windows-based phone. It is uncertain how this will be different from the Microsoft Zune Music Pass, which is currently the music service that is offered to Xbox subscribers.
The negotiations are currently in the preliminary stages. Microsoft’s past experiments in digital music has not seen much success since the Zune digital music players and the Urge music service were failures. However the record companies would most likely welcome the chance to work on the higher profile on the Xbox. The Xbox Live service has about 40 million subscribers.
Microsoft already has music licenses given that they currently run the Zune Music Pass software. However it is unknown whether Microsoft will need to acquire new licenses for the new potential music service.