From 31 December, customers will no longer be able to buy music downloads, and streaming subscriptions will end.
Users could use the new music player to play local music files, but they could also use it to subscribe to Groove Music, the company's music streaming service. Beginning this week*, Groove Music Pass customers can easily move all their curated playlists and collections directly into Spotify. Microsoft and Spotify have already begun working on a Windows 10 app and an Xbox One app. Customers will be able to move their music up until at least 31 January 2018.
Microsoft is partnering with Spotify, and offering a seamless migration from Groove Music to its former competitor. Dropping its music streaming service will help it put more focus on its cloud businesses, Windows 10 operating system, and its Surface line.
Groove Music was originally known as Xbox Music before the name change in July 2015. Microsoft will also begin recommending Windows users to try Spotify to stream music. Music services has never been an important part of the business, and Microsoft has never disclosed metrics around Groove.
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With music streaming services in large supply and at low cost, the competition has become too much for Microsoft's Groove Music service.
Spotify is bigger than Groove Music and offers larger portfolio, users will have no problem in switching to this new service.
The fact that the FAQ includes the question, "What is Groove Music Pass content?" tells you all you need to know about the popularity of Groove.
According to the Music Consumer Insight Report, in August 2017 YouTube received 1.3 billion visitors who came specifically for streaming music - although most of these listeners aren't subscribers.
It will not, however, be migrating playlists, so you'll probably be wanting to think about how you're going to recreate those.