Xbox Music Confusion

Confused about Xbox Music on Windows Phone 8, since it seems ill be upgrading to one soon... do u have to pay to stream for the music store on windows phone 8 or is it like on windows 8 computer free to stream just with ads? On My windows 8 pc I can stream and add songs to my playlist from the store is that how it works on windows phone 8 or do u have to pay to stream on the phone? and one more question the playlists that I make from streaming through the xbox music store do they transfer over to the windows phone 8?