Grooveshark - listen music on a browser. No sign-up required. Best option if you don't want to pay. There are adverts visible on the internet page. My current favorite.
Spotify - listen music using downloadable client. Sign-up required. Free version has adverts and you can only listen 10 hours per month (I think this does not affect new accounts). Spotify is currently available in following countries: Austria, Belgium, Denmark, Faroe Islands, Finland, France, Germany, the Netherlands, Norway, Spain, Sweden, Switzerland, the United Kingdom, and the United States.
Last.fm - Sign-up required. Free in UK, US, and Germany. People in other countries can listen 50 tracks free using Last.fm Radio.
Grooveshark is my favorite option of these three. It's free and there are no (at least yet) advertisements between tracks. By creating a free account you can save your own playlist. For the moment I have to say am very pleased with Grooveshark.
I have also used free (with adds) and unlimited (9,99€ / month) version of Spotify. Spotify Unlimited worked well and there were lot of tracks available. With Spotify Unlimited there is also option to install the client on your mobile phone (iPhone, Android, Symbian, Windows Phone, Palm and BlackBerry). The mobile version is useful if you want to listen music when you are away from your computer. It's also possible to use offline mode and listen music even when you are not online.
I might return to Spotify if Grooveshark service starts to get worse or if I need the features that Spotify Unlimited offers. If you want to pay and get best features I think the Spotify is the best option for you.
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