Several news outlets reported that the new advertising-supported service would start by the end of the year.
Spotify did not comment on the reports.
Word of the project has begun leaking because the company has reportedly begun notifying content partners of the plans, according to Bloomberg, which first reported the story.
The London-based Spotify functions like an online music collection, allowing users to create playlists by downloading specific albums and tracks. The new format would more closely resemble Pandora’s. Pandora users create “radio stations” that play songs by a specific artist and related performers, with display and audio ads mixed in.
Both services offer unpaid and paid versions.