Microsoft is reportedly in talks with record labels over the launch of a music service that would allows users to stream and purchase tracks as it moves to compete with Spotify and attract consumers to its devices. Sources speaking to CNET say that Microsoft will shelve its current Zune Music Pass service to focus on the new product, which will be available to the 40m subscribers to its Xbox Live connected entertainment service. Microsoft is also understood to be looking to partner with a mobile manufacturer, such as Nokia and HTC, to launch a music-focused phone offering the service.
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