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Yahoo deal to bring Spotify to nearly half the Internet

updated 06:32 pm EDT, Tue June 26, 2012

Spotify, Yahoo team up on music integration

Spotify is combining its popularity as a music streaming service with Yahoo's wide reach to deliver music to nearly half the Internet's global users. The two companies today announced a deal with the potential to significantly shape the digital music landscape. The new partnership will see Spotify integrated across Yahoo's Media Network and Yahoo's original content featured on Spotify's existing platform.

Yahoo's Media Network currently reaches 700 million unique users monthly, or 47 percent of the total global Internet audience. Initially, Spotify's on-demand music streaming will be available on Yahoo Music, but the service will eventually be integrated across the rest of Yahoo, including entertainment sites like Yahoo Movies and omg.

Users of Yahoo's sites will eventually see the Spotify play button popping up next to music-related content. Pressing the button will allow users to stream music from Spotify without having to leave the Yahoo page they are currently on.

Yahoo will also develop an app for Spotify's platform that will bring original Yahoo content to Spotify's users.

The deal could have a considerable impact on the digital music landscape. Yahoo has never truly been able to leverage its massive user base into real power in the music sector. The company has previously partnered with RealNetworks, and has since functioned as a central hub for third-party music services, directing users on to sources like iTunes and Amazon.

Spotify, meanwhile, has been steadily improving its standing in the music sector, tying itself into Facebook and securing major advertising deals with big name brands. Paid access adoption for the site is rumored to be lagging, but sources inside the company claim that revenues are booming. The service is now said to be the number two revenue source for the music industry, and it could by some accounts overtake iTunes in the next two years.

by MacNN Staff



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