Facebook and Spotify have announced a streaming pact that could see the cloud-based music service arrive on the profile pages of millions. And we expect the folks over at Spotify towers to be doing backflips over this one, especially given their recent gargantuan competition in the forms of Amazon Cloud Player and Google Music.

Rumours suggest the service could be unleashed onto Facebook audiences in as little as two weeks. The announcement however, does not mean the long awaited US arrival of Spotify, rather that the Facebook and Spotify setup will only exist in countries where it is currently available.

Sources told news service Forbes that, when launched, Facebook users will see a Spotify icon appear to the left of their news feeds. And once clicked, the music streaming software will be installed on their desktop.

More exciting still is the ability to not only play Spotify through Facebook but also to share and listen to music simultaneously with friends. Gone are the days of YouTube link posting on friends Facebook walls, now you will be able to subject your friends to the music no one else likes via the world's most popular social media site.

Facebook’s presence as a media hub continues to grow, first with movies and now the Spotify connection. It remains to be seen whether or not the on-site streaming will create its own version of ‘myspace famous’ celebs, but it certainly won’t hurt some of the smaller bands currently struggling with Facebook’s music setup.

Spotify has somewhat expectedly agreed to the deal for free, taking nothing from Facebook’s plentiful ad revenue. In return, it gains access to just about the largest potential user base imaginable and plentiful victims for their ten pound per-month premium option. Better still, if Spotify were to take the US plunge it would pretty much squash MySpace overnight.

Zuckerberg had originally been working on a music service whilst building Facebook at Harvard. This materialised in what presumably was the P2P Wire Hog software which was designed to be integrated into Facebook. It has been rumoured that Facebook rebel Sean Parker “pullet a bullet in that thing” as it posed potentially serious legal ramifications for the site. 

Spotify and Facebook have been friends for a while now, with Facebook connect incorporated into Spotify’s desktop app. The announcement of a proper formal partnership appears to be the logical extension of this, bringing all the music of Spotify directly into Facebook’s website itself.

A name for the setup is still to be confirmed, possibilities include highly inventive options such as “Facebook Music” and “Spotify on Facebook”.

However, we prefer "Spacebook"... It's got a nice ring to it.