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Amazon is reportedly working on a free music streaming service

Music streaming services seem to have flooded the market and it looks like there will be yet another option for consumers soon.

Amazon is reportedly working on an ad-supported music streaming service according to Billboard. That is to say, a free music streaming service where you would need to listen to adverts.

Should Amazon actually offer a free service, that would put Spotify squarely in its sights as Spotify is the only internationally available streaming service at time of writing to offer a free tier. Apple’s Beats 1 Radio doesn’t count here as it doesn’t allow folks to search for music they want to listen to.

Where Amazon would have an edge over Spotify is the ability run a free music streaming service at a loss, something it has a habit of doing in other aspects of its business.

The firm could foreseeable funnel users from the rumoured free model down to something like its Amazon Music Unlimited subscription service or even Amazon Prime. Amazon could potentially recoup costs from a loss-leading music streaming service else where in the business.

As much as we hate to talk up yet another music streaming service, Amazon offering a free version makes a degree of sense for the reasons outlined above. The firm could even leverage the power of AWS to have artificial intelligence to make recommendations for users.

Of course, Amazon’s success with a free music streaming service would depend on the robustness of the platform and its offering. While folks love a good deal, they also like being able to listen to the music they want.

Of course there is no official word from Amazon yet regarding this service but we’ll keep an eye on the wires to see if it comes to fruition.

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