Amazon to launch ad-supported music service to rival Spotify

Amazon is reportedly readying to launch a free ad-supported music streaming service

Amazon, sources have told Billboard, is in talks to launch an ad-supported music streaming service that could be announced as soon as this week.

According to Billboard, Amazon plans to launch its own ad-supported offering as an alternative to its existing Prime Music service.

We've reached out to Amazon and will update this story if we hear back.

The music streaming services segment is a competitive one, with key players such as Spotify and Apple Music dominating the space. Unlike paid offerings, these streaming tiers typically do not allow users to save music for offline access, limit the number of songs that can be skipped, and block the ability to find and stream specific songs, instead requiring the user to put a playlist on shuffle.

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The firm also offers Amazon Music Unlimited for $9.99 a month ($7.99 for Prime members).

Spotify went public just under a year ago, and since then, its stock has declined roughly 14 percent.

A completely free service would theoretically allow Amazon Echo smart speaker owners to ask Alexa to stream music without having to pay for any subscription. The company already has a popular channel through which to market the service for free - its line of Echo speakers - and the intent here seems to be to go head-to-head against Spotify. Right out of the box users would be able to start playing music without making any payments or signing up for another service.

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