Peter Bale, executive producer of MSN recently spoke to the Telegraph and announced that Microsoft will launch a streaming music service “imminently”, by the end of July. Bale said the service will be similar to Spotify, a streaming music service that offers both an ad-supported listening option as well as a premium subscription service with no ads. Bale also added that Microsoft is considering extending the service to the Xbox 360, but he didn’t give any other details.

They are still examining a business model. Apparently the service would let users stream tunes for free as long as they listen to ads every half hour or so. It will be interesting to see how this initiative will tie-in with the company’s Xbox 360 and Zune.

You’ll know more when we do.

[Joystiq]