Microsoft Streaming Music Service - "Imminently"

Engadget tells us that Microsoft is "looking at launching a music streaming service imminently."

Rumor is (and need to stress - this is all rumor so far) this will be a free ad-supported streaming service. Not quite sure if it would compete with the Ping.fm and Pandoras of the world - or if it would be something more like an ad-supported Zune Pass.

The second option certainly makes a lot more sense, and helps sort out many of the "why is there no versions of the Zune HD (rumored, at least), coming with a hard drive.

If it all comes from the cloud, … maybe we know.

Thoughts …?