Advertising has been an area of intense interest for Amazon.com (NASDAQ:AMZN) over the past couple of years. What began as a way to promote products on its digital shopping site has become a fast-growing and extremely lucrative sideline, generating more than $10 billion for the company last year.
That success has prompted Amazon to find other ways to grow its nascent advertising business. Reports recently emerged that the company is in talks to launch an ad-supported streaming music service, a move that should have industry leader Spotify (NYSE:SPOT) quaking in its digital boots.
Alexa, stream free music
Amazon is looking to launch a free, ad-supported music service in a move that would represent the clearest threat yet to Spotify's dominance, according to a report from Billboard. The service would be geared toward Amazon's voice-activated Echo smart speakers and would feature a limited catalog of songs.
In order to secure the rights to this music, Amazon has reportedly agreed to pay some record labels a per-stream rate, at least initially, regardless of how much advertising is included on the platform.