The company is in talks with music companies for the service.
Amazon is planning to launch a subscription based streaming music service similar to Spotify.
The online retailer is reportedly in talks with music companies to start the subscription service, according to The Verge.
Sources told the technology website that 'details are few and the talks have been described as very informal'.
Amazon already offers music downloads service and a music locker service which allows users to store their music collection and the company offers these services through Kindle Fire tablets.
Amazon's new service will compete against other players like Rdio and Rhapsody while Google and Apple are also working on similar music streaming services.
The company previously launched a digital music store specifically for Apple iPhone and iPod touch devices having 22 million songs and the Cloud Player app which allows streaming music from the cloud through iPad and iPad Mini.