Amazon Is Prepping a Spotify Competitor (Report)

Amazon CEO Jeff Bezos

The streaming music service would cost $10 a month.

Amazon is looking to compete more directly with Spotify and Apple with the launch of a new music streaming service, according to a report Friday from Reuters

The service, per Reuters' anonymous sources, is expected to launch by early fall and will cost $9.99 a month for access to a library of streaming songs. The Seattle-based e-commerce giant is said to be finalizing its deals with the major music labels. 

Amazon already offers music streaming through its Prime Music service, an add-on feature available to people who subscribe to the $99 annual Prime membership. That membership also includes access to Prime Video, which streams original and licensed TV shows and movies.

These services have traditionally come bundled together, but the Jeff Bezos-led company recently has shown a willingness to separate them. In April, Amazon announced that it would begin offering an $8.99 monthly subscription to just Prime Video, a move aimed directly at competitors like Netflix and Hulu.  

With the launch of a stand-alone music streaming service, Amazon will be entering a competitive streaming landscape already dominated by Spotify, Apple Music and Tidal. YouTube also offers music streaming through its Red subscription. But that might not be all that Amazon is after. According to Reuters, the stand-alone service also will be used to lure buyers to the Amazon Echo, a speaker for the home that uses voice controls to play music, read the news and answer questions.

It's unclear what kind of existing user base Amazon has to promote such a service. The company does not disclose how many people pay for Prime, which entices customers by offering free shipping. It says only that it has "tens of millions" of subscribers and that memberships increased by 51 percent during 2015. Spotify, meanwhile, has 30 million subscribers and Apple Music has 13 million. 

An Amazon spokeswoman did not immediately respond to a request for comment.