Amazon Planning Free Ad-Supported Music Streamer To Take On Spotify, Pandora

UPDATED: Amazon is in talks with the major labels to launch an ad-supported music streaming service in direct competition to Spotify and Pandora according to a new report. The free music service could launch as early as next week.

Currently, Spotify is the only major music service to have a full ad-supported offering. Pandora also has a free non-interactive music service. 

Amazon will market the free music service through Echo and other Alexa voice controlled devices, sources tell Billboard, and have a limited catalog. 

Amazon currently offers a music service with a limited catalog included in its $119 per year Prime offering. Amazon Music Unlimited subscriptions provide a full catalog for $9.99 a month, discounted to $7.99 for Prime members and $3.99 a month those who only listen on an Echo device.

Analysis

Amazon Music is on track to hit 35 million monthly users this year, across its various tiers. making Amazon Music a major competitor.

By expanding the Amazon Music offering to ad-supported, the major labels likely hope to blunt Spotify's increasingly influential and combative position as the market leader.