Microsoft’s XBox Music Service Goes Ad-Supported With TargetSpot

Company will provide in-stream ads a la Spotify

Streaming audio service XBox Music—which is not, actually, just for XBox—will now have in-stream advertisements. TargetSpot, which provides targeted ads for both CBS Radio and ABC News Radio, will supply the spots.

It's another revenue stream for the service, which Microsoft has ready to roll on all of its new devices and also offers a subscription model. In-stream ads for services like Pandora and Spotify have become standard in recent years—as the sites have supplanted radio, they've also started to adopt the older medium's revenue streams.

“Our research shows that digital audio listeners consume their content across multiple music services and across multiple devices,” said TargetSpot CEO Eyal Goldwerger. Microsoft's newest OS, Windows 8, includes the service along with a host of other try-before-you-buy software.

It's also crucial to Microsoft that the company get streaming services like XBox Music right: as the company gears up to release the XBox 720, it and competitor Sony's new PS4 system are likely to include a controversial digital rights management system that will require the console to be constantly connected to the Internet. There have been many complaints among consumers about the trend, and benefits like a solid music streaming service could do much to quell consumer ire.