It appears that HTC isn’t the only company interested in started up a new music service. There have been reports that Microsoft is planning on overhauling its music service this year, replacing the Zune branding with Xbox Live branding. A report at CNET apparently confirms that Microsoft is in talks with music labels to change its current agreements to support its new service.

The plan is rumored to use the Xbox Live branding across Xbox, Windows Phone and Windows on the desktop. This branding move is rumors to happen some time this summer. Microsoft also aims to re-launch the music service as a simpler, easier to understand and better integrated offering that is detailed as very similar to Spotify. It may also come with a video component. Current Zune Pass subscribers will be able to keep their current membership model if they choose to do so.

The aim is to have it all lined up in time for holiday spending season. To make the service more attractive, Microsoft will offer free Xbox Live for Windows subscriptions to new PC buyers. Given the unimaginative Zune branding and the fact that Microsoft has halted its Zune-specific hardware, connecting a music service to the stronger Xbox Live brand seems a lot more sensible.