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The news: Amazon expanded the free, ad-supported version of Amazon Music to the iPhone, Android devices, and Fire TV. The app was previously only available on the Amazon Echo.

Why it matters: Spotify shares dropped nearly 5 percent after the announcement and kept falling Tuesday morning. The streaming music leader also offers free and paid options. Though it trails Spotify and Apple in terms of total subscribers, Amazon Music grew its user base 70 percent over the past year, according to a recent Financial Times report.

Big picture: Amazon has been growing its music arm over the past few years. It already offers 2 million songs ad-free to Prime members, who can also pay $7.99 a month for Amazon Music Unlimited ($9.99 for non-members). Amazon rolled out a new high-definition option called Amazon Music HD that costs $12.99 per month for Prime members, or $14.99 for non-subscribers. Amazon also expanded its own speaker lineup with the recent introduction of the new high-end Echo Studio.

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