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Just announced on PS Blog:

We know how important music is to our community of gamers, and this partnership combines the best in music with the best in gaming. PlayStation Network users will enjoy the convenience of linking your accounts to Spotify, making it easy to sign-up with your existing ID and subscribe to Spotify’s Premium service.

You can also use Spotify while playing games on PS4, enabling you to soundtrack your gaming sessions with your favorite songs in the background. Want something heavy and rocking for an intense Destiny Raid? How about some old school hip hop while taking the field in Madden NFL?
With more than 30 million songs and 1.5 billion playlists, Spotify on PlayStation Music has it covered. As we get closer to launch we look forward to telling you about some of the other great features that will be available exclusively through Spotify on PlayStation Music.
The new service will launch initially on PS4 and PS3, as well as Xperia smartphones and tablets. You’ll of course be able to listen to your favorite playlists – including existing playlists from current Spotify users as well as Spotify curated playlists – and enjoy the service on all of Spotify’s supported devices.

Prior to the launch of Spotify on PlayStation Music, the Music Unlimited service will close in all 19 countries on March 29, 2015. Nearly all of these countries will be among the 41 markets where PlayStation Music featuring Spotify will be available at launch, including the U.S., Canada, Mexico and Brazil.

From February 28, 2015, Music Unlimited users with active subscriptions will receive free access to Music Unlimited through March 29, 2015.
Stay tuned to PlayStation.Blog for more details on PlayStation Music featuring Spotify, and in the meantime you can sign up for updates here.

Never used Music Unlimited and found USB music player support lacking so this is a godsend. Cannot wait.

UPDATE: Sign-up for updates here: https://www.spotify.com/us/playstation/
UPDATE 2:

For all those wondering: according to a PS employee on the EU blog, the Free ad-supported accounts will work too.

UPDATE 3 (clarification on launch markets):

Launch markets:

The PlayStation Music featuring Spotify launch markets are as follows: Andorra, Austria, Australia, Belgium, Brazil, Bulgaria, Canada, Chile, Cyprus, Czech Republic, Denmark, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Italy, Liechtenstein, Luxembourg, Malaysia, Malta, Mexico, Monaco, New Zealand, Netherlands, Norway, Peru, Poland, Portugal, Singapore, Slovakia, Spain, Sweden, Switzerland, Taiwan, Turkey, UK and USA

http://blog.eu.playstation.com/2015/01/28/playstation-meet-spotify/#comment-607707

UPDATE 4:

Holy crap!

Yes. Both versions of Spotify, free and premium, will be available when we launch Spotify on PlayStation Music.

http://blog.us.playstation.com/2015/01/28/playstation-meet-spotify/#comment-1061504


As if this news wasn't already great

 

[Derpyduck]

Yes yes yes yes yes yes yes

 

[benny_a]

My cheap ass trial for Music Unlimited is just done and I signed up for the 99 cents for 3 months on Spotify. Good timing. ;-)

 

[Hoo-doo]

Fuck yes. Background play too?

Aww yiss. Driveclub wil be even better now.

 

[Christos]

Oh yes, awesome news!

 

[Bloodrage]

Fuck yes.

Driveclub wil be even better now.

My thoughts exactly.

 

[Succinct Verbosity]

This seems like an extremely smart move to me.

 

[Andrefpvs]

Background play on PS4 is a great feature.

Also, more countries can use this versus Music Unlimited, so good news all around.

 

[delSai]

Hell yeah!!

 

[VanWinkle]

Wow, that's huge. Music Unlimited has been around for a pretty long time now.

I definitely welcome the change.

 

[BrettHeazy]

great news!

 

[Hasney]

Damn, wish Google Play got more traction. They seem to have more stuff that I want to listen to, but this combined with Uber support may make me switch.

 

[Zombie James]

This is awesome, absolutely love Spotify.

 

[Mr_Pooriya]

Holy shit, this is perfect!

 

[chadskin]

Good move, Sony. I very much likey.

 

[Shao Kahn Brewing a Stew]

Oh man.

This is what I'm talking about!!!

 

[dugdug]

Smart moves with both killing Music Unlimited and linking with Spotify. I liked Music Unlimited, but, I'm pretty sure I was one of the 10 people actually subscribed to it. Just recently cancelled that sub and moved over to Spotify.

 

[U n i o n 0015]

Nice, hopefully I can ditch that Music Unlimited icon on my PS4 dashboard.

 

[ta155]

Would love similar support for Google Play Music at some point.

 

[Pantsuit Apologist]

Yuuuussss!

 

[giancarlo123x]

Fuck yes! I already pay for premium on my phone so this is amazing news.

 

[Uno Venova]

You mean forcing MU to being the only music option for a year didn't work?

 

[SEGAvangelist]

The new service will launch initially on PS4 and PS3, as well as Xperia smartphones and tablets.

So is this a timed exclusivity money hat or something?

EDIT: Awesome news, btw. Should make a ton of people happy.

 

[Dead Prince]

im okay with spotify.

 

[Darklord]

Fantastic. Who even used Music Unlimited anyway?

 

[Skittles]

This is going to make playing borderlands even better

 

[Kysen]

Will the icon be permanent too?

 

[blizzardsounds]

Was hoping for Pandora, but this will work

 

[Tambini]

This is a good thing

 

[TheApatheticOne]

Awww yisssss.

 

[CzarTim]

best news ever

 

[TheJollyCorner]

Now DriveClub can get the music it deserves: The Ridge Racer Type 4 soundtrack!

 

[hodgy100]

Google play too please D:

 

[Baliis]

Wow, great news.

 

[AyaisMUsikWhore]

YAAAAAAAAAAAAAAAAAAASSSSSSSSSSS!!!!!!

 

[VanWinkle]

My cheap ass trial for Music Unlimited is just done and I signed up for the 99 cents for 3 months on Spotify. Good timing. ;-)

Wait, what's this 99 cents for three months thing about?

 

[glaurung]

Some of the best news in a long time.

Give me the ability to stream my Spotify playlists when playing a game, while automatically muting the game's own soundtrack. Bliss.

 

[mocolostrocolos]

FUCKING YES!!!!

 

[Krakn3Dfx]

You can also use Spotify while playing games on PS4, enabling you to soundtrack your gaming sessions with your favorite songs in the background

Boom, megaton.

 

[Footos22]

Wow never expected this. great news

 

[DavidDesu]

This is great, kind of. I use Google Play Music and it has let me upload all of my own music to make it streamable anywhere. Spotify is limited to what's available there and there only. So for me it's not ideal as much of my favourite music is stuff I own that I've uploaded to Google and isn't available on any of the streaming services in any other way.

This is exclusive as well so I don't expect to see any competing services from the likes of Google or others. Background play is fantastic and I may, or may not sign up to Spotify anyway just for that feature. It's about time, I just wish they were open and did this with other services.

 

[CreeperBlocks]

YESSSSS OMG I CANT WAIT AHHHH

 

[GrizzleBoy]

Sex.

 

[Andrefpvs]

Is there video game music on Spotify? 'Cause I want to enjoy my video game music while I enjoy my video games.

Spoiler

yodawg.png

 

[EASTC0AST_GH05T]

Smart moves with both killing Music Unlimited and linking with Spotify. I liked Music Unlimited, but, I'm pretty sure I was one of the 10 people actually subscribed to it. Just recently cancelled that sub and moved over to Spotify.

does spotify have a large library of albums like music unlimited?

 

[PBY]

How will background play work- is it like a system level thing? Or do games need to support it?

 

[JehutyRunner]

Gamechanger.

 

[Majine]

Happy for y'all, Spotify is awesome. Hopefully they bring it to XBO as well.

 

[Lakitu]

Fantastic news.

 

[Derpyduck]

Fuck yes. Background play too?

Aww yiss. Driveclub wil be even better now.

My assumption is yes since it's replacing a service that had it.