Shares of the streaming-music service Spotify fell more than 4% on Monday after it was reported that Amazon was looking to launch a free music service that could arrive as early as next week.
Billboard, citing sources familiar with the plan, reported on Friday that Amazon would market the ad-supported service through its Echo speakers and offer a limited catalog. Amazon declined to comment to Billboard.
According to the report, Amazon has “offered to initially pay some record labels per stream, regardless of how much advertising” it sells.
Spotify Technology shares were trading at $138.63 per share on Monday afternoon, down $6.32 (-4.36%). Year-to-date, SPOT has gained 22.14%, versus a 16.53% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Markets Insider.