Both subscription-based services are expected to cost $9.99 per month, a price that has become the industry standard, and compete with heavyweights like Apple Music and Spotify.
Amazon's offering could launch as early as September, according to the report, while Pandora is said to be making progress towards debuting its service later this year.
Reuters first reported Amazon's plans to launch a standalone streaming music service in June, followed by a Recode report last week claiming the online retailer is also working on a $5-a-month subscription music service that will be exclusive to owners of the company's internet-connected Echo speaker.
Amazon currently sells individual songs or albums through Amazon Music, while Amazon Prime subscribers can stream Amazon music, playlists, and radio stations for free, but the selection is limited compared to Apple Music and Spotify.
Pandora's ambitions to launch its own subscription music service, likely based on its acquisition of "key assets" from Rdio in 2015, were first reported by The Wall Street Journal earlier this month. The company plans to offer two price tiers by also slightly tweaking its existing $5 per month ad-free option with select new perks like skipping songs and offline listening, the report said.
Pandora currently offers customers in the U.S., Australia, and New Zealand the ability to listen to free, ad-supported radio stations centered around particular artists or songs, rather than offering on-demand listening like Apple Music. By offering only randomized, radio-like stations that prevent users from playing specific songs, it has been able to bypass licensing agreements with major record labels.