Are you using 8 or 8.1? with 8.1 streaming of your stuff is supported through xbox music and cortana. Outlook.com will also be getting integrated music support for backing up your specific tracks. with 8 it's not great, but 8.1 solves most of the issues. However, 8.1 isn't rolled out yet, so today it's still annoying.
what phone did you get?
I have a Samsung ATIV... so far I am really liking it. It's very responsive, the sound quality on calls is excellent. I like the OS quite a bit - everything flows really nicely, and setup is a breeze for most things. Honestly, in my opinion if Windows Phone had more apps it would kick android's ass.
I've heard good things about 8.1 but unfortunately I just learned today that the Samsung ATIV has some compatibility issues (firmware related) so it's advised to not upgrade. Supposedly, it'll be resolved by the time 8.1 is pushed out to everyone, but for now I'm stuck at 8.
As far as the music thing goes, I got my answer from a tech on the Xbox Music chat thing... apparently, you can only steam music for free to a web browser - to use a device (phone for example) you have to have an Xbox Music Pass. That's ten bucks a month so I'm going to have to decide if it's worth it. I'm feeling more inclined to search for alternatives
Aside from the cost, there are some other things I don't like... for one thing, it took me forever to match my music to their cloud, and the reason is pretty frikkin' stupid. Apparently, the app slows down considerably when it isn't up on the screen. It's a Modern UI app, obviously, and if it's up on the screen you can watch the count of files it's gone through move fairly well, between 100-200 every minute or so. But if you minimize the app, or alt-tab to something else, or even lock your machine apparently, it slows WAAAYYY down. That's just bizarre.
The other thing is that for some reasons, a lot of my songs match (ie. they're in their store) and the premise is that if I have a local song, and it's in their store, I get to stream it. But not so fast... if I go to the music.xbox.com website, all of my Metallica albums are there for example, but I can't actually play them - it has a flag with a message saying that the album is unavailable for playing at the request of the copyright holder. All of my music is legal - it's either been ripped from CDs I purchased, or bought from places like Amazon. Damned if I'm going to pay 10 bucks a month and not be able to play my entire collection because Lars Ulrich still has a bug up his ass about online music.
Sooo.... anyone know of a good, free (or reasonable) streaming app for Windows Phone?