They will be able to pick from millions of songs and stream them for free as long as they put up with an audio advert every 15 minutes.
The new feature, called Xbox Music, is not on offer anywhere else at the moment.
Sweden's Spotify allows free on-demand music on PCs but tablet users must pay a monthly subscription.
The free version of Xbox Music will not let you download songs and save them for offline playback. That also requires a monthly fee.