The new streaming service will be different from Spotify and Apple Music, as it will only be available for Echo owners but at half the price (in the $4 or $5 range).
Recode reports Amazon plans to launch the new service in September. An Amazon representative didn't respond to request for comment.
Amazon has found a hit with the Echo, a speaker with a voice assistant. Users can use natural language to get weather information, queue songs, request an Uber, and more through its artificial intelligence software Alexa.
The Information reports Amazon sold one million Echos in the last half of 2015, and it's aiming to sell three million in 2016.
Amazon currently offers music through Prime Music, an online music locker that serves up music ad-free with a $99 per year Prime subscription. It's a limited catalog compared to competitors Spotify and Apple Music.
It's likely the Echo music-streaming service could go in conjunction with a full-fledged streaming service from Amazon that has been rumored for some time. Reuters says the $9.99 per month service will be available in the fall.
Amazon made a similar monthly subscription service available to Prime Video customers at $8.99 per month, which is cheaper than its rival Netflix.