The service will be available to Amazon Prime subscribers, the online market place's paid shopping membership option.
Sony Music (SNE) and Warner Music Group have reportedly signed on to license their music to the Amazon service, Universal Music was also approached but has yet to agree to the deal, the Post said.
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Shares of Amazon are higher by 0.91% to $335.42 in afternoon trading on Wednesday.
Separately, TheStreet Ratings team rates AMAZON.COM INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMAZON.COM INC (AMZN) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and poor profit margins."