Xbox Live Gold members have been able to use Last.fm to turn their game console into a stereo. Come November, those with a Zune pass can also do the Xbox stereo thing through the Zune library.
The video you see above is a sneak listen to the improved Zune music integration coming in the November Xbox update. As we've been showing all day on Kotaku, some of our team have gotten early access to the dashboard update. One thing that granted me access to was this updated Zune store. I've captured the video here from my TV
(sorry for the lack of voiceover; due to a technical mistake on my end). Video swapped, voiceover added.
In the video, you can see me flicking through many of the core features, including music streaming, "smart DJ" playlists that guess what you want to hear, a social tab that lets me find out what, say, our Mike Fahey (Bunny Spatial) likes listening to and a music video store.
You have to pay to download videos, but the other features are all part of what you get if you have a subscription to Microsoft's music store. This is called having a Zune Pass. The Zune Pass starts at $US15 a month, though Microsoft also offers 14-day trials.