The service, called Monkey, will be backed with a TV, press and outdoor campaign in September, which will feature Universal Music artists and promote shared playlists.
Monkey customers get access to the music service plus free 300 texts each month when they top up £10.
The songs can be streamed through any mobile handset and online at . The service was designed by Poke.
Monkey lets customers share playlists on their mobiles and via social networks.
Orange plans to drive introduce ads on the site and mobile marketing from brands which want to promote competitions and offers to young consumers.
Universal Music will provide exclusive music from artists such as Mika, The Saturdays and Lady GaGa, pre-release tracks and other content to the Monkey website such as competitions, artist interviews and playlists.
Orange said it was ‘keeping an open mind' on additional music label partnerships.
Monkey will be promoted by 4Music across the Channel 4 portfolio. Online, 4Music.com will promote the Monkey service and music offering, and the 4Music team will provide news, artist features, playlists, exclusive content and competitions.
Monkey customers can access the service on their phones by dialling 247. Customers are presented with a choice of 8 pre-set playlists such as R&B, Rock, Pop, Chart and playlists from 4Music. These will be refreshed regularly.
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