Xbox Live is Zune Video NOT Zune Marketplace. Music is not part of the Xbox Live offering. Zune, Microsoft's 'end-to-end music and entertainment service' is coming to Xbox Live. Later today the mega-corp will officially announce its plans, which - although intriguing - are substantially less radical than the Zune mobile phone and/or Zune portable games player imagined by internet rumour-mongers over the weekend. Up until now, the portable media player and its online iTunes Store equivalent, Zune Marketplace, have only been available in the US. From early Autumn, however, a revised service, Zune Video, will be available on Xbox Live in the US, UK, France, Italy, Germany, Ireland and Spain (with more countries coming aboard later). Xbox 360 owners in these territories will be able to go online and access video content and play it via their console.
The finer details have not yet been announced, but the basics were revealed to me by Chris Stephenson, Microsoft's General Manager of Consumer Marketing for TV, Video and Music Business. As with the current Zune set-up in the States, it looks like Xbox Live owners will be offered a subscription service, allowing them to download content from the Zune Video catalogue.
