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AP Photo / Richard Drew
- Spotify shares slipped on Monday after a report said Amazon has engaged in talks to launch a free music service in order to compete directly with the streaming platform.
- Billboard, citing sources close to the project, said that Amazon would market the service via its Echo speakers and offer a limited catalog.
- The service could be available as early as next week, Billboard announced.
- Watch the live Spotify trade.
Shares of the streaming music service Spotify fell more than 4% Monday after learning that Amazon was looking to launch a free music service that could arrive as early as next week.
Billboard, citing sources close to the project, said Friday that Amazon would market the service funded by advertising through its Echo speakers and offer a limited catalog. Amazon declined to comment on Billboard.
According to the report, Amazon has "offered to initially pay a few labels per feed, regardless of the amount of advertising" sold.
Spotify shares have had a bumpy ride since their debut on the New York Stock Exchange last April thanks to a non-traditional direct listing. The shares closed their first trading day at $ 148.30 each and traded around $ 140 Monday. The stock has fallen 27% since it's reached a record of $ 198.85 last July.
The Swedish streaming music platform has bought podcast companies Gimlet and Anchor earlier this year to compete with Apple's popular iTunes podcast offerings.
Monday 's sale was a familiar market reaction to Amazon' s plans to enter a new industry. EEarlier this month, Roku's shares fell after the announcement of Amazon's willingness to step up its streaming video offerings.
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