Amazon to launch ad-supported music streaming

Spotify stock exchange

Amazon is now looking at introducing a new free music streaming service to rival Spotify. However, built-in free streaming goes hand-in-hand with the company's long-standing effort to popularize voice commands via its Alexa-supported devices. The company will offset the cost this through ad-revenue and the potential increase in the sale of the company's Echo hardware, says the report.

In India, music streaming is part of the Amazon Prime subscription service which also offers free shipping and Amazon Prime Video for Rs 129 per month or Rs 999 annually. Prime Music is something listeners seek out. Right out of the box users would be able to start playing music without making any payments or signing up for another service. According to the article, the trillion-dollar giant will launch a free music subscription service that will compete with Spotify's free tier and largely focus on compatibility with Echo smart speakers.

The challenge would of course be how to get labels to give license to their music for a free service, which is the problem that Spotify initially faced.

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One of the reasons why Spotify is probably the most popular music streaming service right now is due to their free tier. From the sounds of it, this free tier will also only be available on Echo speakers, and will come with a smaller library of music.

However, the service would not be expected to have as extensive a catalogue as a service like Spotify. Apple's Beats 1 Radio doesn't count here as it doesn't allow folks to search for music they want to listen to. In the USA, the company has various pricing tiers for its music streaming service, starting at $3.99 per month for those listening only on Echo devices.

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