Amazon is reportedly in talks to launch a free ad-supported music streaming service – a move that will see it compete even more directly with Spotify.

Billboard sources attest that this potential new service could launch in the US as early as next week.

According to the report, Amazon speaker owners would have access to a much more limited catalogue of music compared to Prime (AUD$6.99/month) and Music Unlimited (AUD$11.99/month).

Users wishing to access a larger library of music would have to pay the subscription fee to either Prime or Music Unlimited.

The new music service would be marketed through the global e-retailer and technology company’s Echo speakers.

Reportedly, Amazon has offered to pay “some record labels per stream” regardless of advertising is running alongside those songs.

Amazon Echo Link Amazon Tipped To Launch Free Music Streaming Service

The technology company recently brought its smart voice assistant, Alexa, to high-fidelity stereo system owners here in Australia, with the release of its new ‘Echo Link‘ ($299) and ‘Echo Link Amp‘ ($459).

This latest move would see it becoming an even stronger force in the global music market as, unlike Spotify, it can afford to offer discounted music as a loss-leader to support its retail interests.

Spotify is the only subscription service which offers a generous free tier, supported by ads, which it uses to sells its Premium subscription to users.

Amazon has not commented on the rumours.

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