Microsoft planning Spotify rival?

The Redmond, Washington-based software maker is in talks with major record companies for the needed rights, and plans to begin service later this year, said the people, who asked not to be identified because the discussions aren’t complete.

By combining the best features of competing services, Microsoft seeks to build a digital product that lets customers consume music any way they like. The maker of the Xbox console is building the new music business after its unsuccessful effort with the Zune service, which will close and move customers to Xbox Music, the company said on its website.