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Amazon reportedly exploring free, ad-supported music streaming service, Spotify shares slip

Amazon reportedly exploring free, ad-supported music streaming service, Spotify shares slip

Billboard, citing sources familiar with the plan, reported on Friday that Amazon would market the ad-supported service through its Echo speakers and offer a limited catalog.

Amazon is busy negotiating terms and conditions with several music labels to bring the ad-supported free service and expand its portfolio.

Amazon already offers Prime Music as part of its Amazon Prime subscription, as well as Amazon Music Unlimited, which costs $9.99 per month.

As it stands, Spotify is now the only big-name music streaming provider to offer an ad-supported free tier.

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According to a set of new reports, Amazon will soon be launching a free variant of its music service in hope to steal some clients from Spotify.

The streaming music landscape is about to get a little more fractured, with yet another deep-pocketed tech giant set to enter the field.

However, the service would not be expected to have as extensive a catalogue as a service like Spotify. Key to the new service - assuming it actually launches - will be Amazon's hardware products, specifically the Echo smart speaker models. 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 service could become available as early as next week, Billboard reported.