What is the big deal about Xbox Music or Zune?

Because there aren't any free services for watching movies and TV shows.
Hulu and Crackle are some free sites. Sure, there are a lot of ads, and the content is limited, but for an occasional user if will do fine. That is why some that occasionally use Pandora are ok with ads because 1)it's free and 2) it's not used often. And heavy users are willing to pay for music streaming because they like their features (no ads, control of music, etc).
 
That's pretty much been my argument for Satellite radio also. I have a huge collection of music on my computer and I can say, that for the most part, the selection I found on Xbox/Zune/Amazon/iTunes, et al., have nothing I am missing. I converted or have found digital copies of every album, tape I have ever owned and wanted to listen to. I have nearly 1 terabyte HD on my computer that is loaded with my music collection and there's probably a pretty good bit of it not available in the online stores. Try finding David and David's: Welcome to the Boom Town at any of the online stores.

I'll load a few files onto my phone through Zune but I can't see loading up my skydrive account since I am 3G and the ability to stream really isn't good enough for listening.

That's pretty much the same with me. I converted loads of CDs over the years and have 2300 albums in my music collection.

In case you're interested, eMusic has "Boomtown". eMusic | Stimulating Curious Musical Minds | eMusic

I used to subscribe to eMusic, but it was not a streaming service. It is for actually downloading music that you then own. It had a lot of indie music at one time, but it now has a lot of mainstream stuff too.

I canceled my subscription, since I was no longer finding enough songs I wanted to buy every month.
 
The thing I like about the 10/month is you can basically download a ton of songs free as long as youre a subscriber and if you later on deicde to buy it, you arent stuck with tracks on an album you dont like.
 

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