Amazon is planning a cheaper music streaming service that only works with the Echo

Amazon

Amazon is developing a new music streaming service that will be half the price of rival offerings like Spotify, but which will only work on the company's internet-connected Echo speaker, according to a report by Recode's Peter Kafka.

The subscription service will cost $4 or $5 a month, half of what competitors like Spotify and Apple music charge for their streaming offerings, and could debut as soon as September if Amazon reaches deals with music labels, sources told Recode.

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The Echo device, which lets users order household items, get the weather and find other information by speaking in their natural voice, has turned into a surprise hit for Amazon.

The new Echo-specific music service is not to be confused with another standalone music streaming subscription service that Amazon also reportedly has in the works and which would cost $10 a month.

Both of the new streaming music services would allow users to listen to any tracks they like, free of ads. That's different than Amazon's existing Amazon Music service, which gives Amazon Prime subscribers access to a limited library of music.

You can read the full Recode post here.

Disclosure: Jeff Bezos is an investor in Business Insider through hispersonal investment company Bezos Expeditions.