Amazon is preparing to launch a free, ad-supported music streaming service soon

Amazon's free streaming service is essentially meant to work on Alexa-enabled devices.

Amazon is reportedly in talks with big music labels about launching a free, ad-supported service to directly take on Spotify.

The service is said to offer a limited selection of music, designed to work best on Amazon's Echo range of Alexa-enabled devices.

But doesn't Amazon already have Prime Music? Well, the new service sounds a lot like Amazon Prime Music, which is the music selection you get as part of a Prime subscription. However, in this case, you'd have to listen to ads instead of signing up for Amazon Prime, says a report by Billboard.

 Amazon is preparing to launch a free, ad-supported music streaming service soon

Amazon upcoming free service is essentially meant for users of its Echo range of devices. Image: tech2/Sachin Gokhale

What's also interesting is that the same sources also believe that the service could be launching as early as next week.

The reasoning behind launching such a service does make sense as when you look at markets outside India, Spotify is the only music streaming platform that markets a free streaming service. In India, though, both JioSaavn and Gaana offer something similar, which will intensify the competition for Amazon. However, the plan for a free service would entice a lot of buyers.

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. In the US, the company has various pricing tiers for its music streaming service, starting at $3.99 per month for those listening only on Echo devices.

The music-streaming market in India, of late, has become quite crowded with the likes of Spotify and YouTube Music making an entry. Apple Music also recently slashed prices of all its plans in India, soon after JioSaavn and Gaana reduced their subscription charges by a whopping 70 percent.

(Also read: Apple Music vs Gaana vs JioSaavn vs YouTube Music: The Indian music streaming market is heating up)

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.