Spotify and Yahoo Make A Deal

In a move that will further extend Spotify‘s brand as the go-to platform for on demand streaming music, Spotify and Yahoo have announced a partnership. Spotify will replace Rhapsody as the music platform within Yahoo Media network and Yahoo will get an app within Spotify’s platform.

While times have been a little tough for Yahoo, this still represents a big deal for Spotify in terms of extending its reach and gaining new listener registrations. Spotify reportedly has 10 million registered users. Their reach in the US has been growing, but still small compared to Pandora.

Yahoo has had several twists and turns in its streaming music path – in the early 2000s they had their own Yahoo Launchcast, one of the biggest streaming services at the time. They eventually terminated that service due to expenses, primarily royalties, and signed a deal with Rhapsody and CBSRadio in 2008. While there was never any announcement, it looks like the Launchcast service, which was “powered by CBSRadio”, stopped streaming mid last year.

This is a great deal for Spotify, and one that compliments its global brand and reach. From the Facebook deal to this one, Spotify’s CEO and Founder certainly has the capacity to get the big deals done. He’s made no secret of his vision that Spotify become the world’s on-demand music library, and deals like this will certainly help him extend that plan.

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