Amazon to launch ad-supported music service to rival Spotify

Amazon tipped to launch a free, ad-supported music service to take on Spotify

Amazon tipped to launch a free, ad-supported music service to take on Spotify

That's unlike the service generally regarded as Spotify's closest competitor - Apple Music, which only offers a paid tier with no free option.

The new service would feature a limited catalog and Amazon has reportedly offered to pay labels per stream in order to clear the licensing to offer free music via an ad-supported model.

Even though Amazon isn't exactly struggling from a financial standpoint, the e-commerce giant has been taking plenty of risks and constantly trying new things in the past few years to expand its product and services portfolio.

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The goal of releasing such a service would reportedly be to give its users a free music streaming alternative to be used through its Echo speakers.

Amazon already offers Prime Music as part of its Amazon Prime subscription, as well as Amazon Music Unlimited, which costs $9.99 per month. But with Amazon's music service not having the mindshare owned by Spotify, or being automatically installed on millions of smartphones like Apple Music, it's facing an uphill battle. The report also claims that the service will initially be exclusive to Echo speakers and could launch as early as next week.

Though consumers have a vast number of paid streaming services to choose from, large, popular free options remain relatively scarce. 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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