Spotify teams up with Yahoo for massive distribution partnership

Yahoo music spotify feature header distribution dealYahoo and music streaming service Spotify are joining forces, the companies announced just moments ago. The strategic partnership will bring Spotify to Yahoo’s Media Network, which boasts a month unique viewership of nearly 700 million, according to comScore. This marks Spotify’s largest partnership since teaming up with Facebook late last year.

Spotify integration will begin on Yahoo Music, and later expand to the rest of Yahoo’s worldwide Web properties, such as Yahoo Movies and its celebrity gossip site OMG!. Yahoo will also take advantage of Spotify’s newfound platform status to launch its own app for Spotify users. The Yahoo app will launch on Spotify later this year.

“At Spotify we want to light up the Web with music and as Yahoo!’s global music partner we’re able to reach their massive audience” said Daniel Ek, Spotify CEO and founder, in a statement.  “We are really excited about the new Yahoo! leadership team and thrilled to partner with them to build greatexperiences around high quality content.”

The goal of the partnership is, of course, to boost user “engagement” for both Yahoo and Spotify. In other words, they want to make more money. (Hey, it’s what businesses do.)

As a whole, things appear to be going well for Spotify. In April, the company announced a partnership with Coca-Cola. We’re not sure why, but they did. And just yesterday, the San Francisco Chronicle reported that Spotify is now the second largest source of revenue for major music labels, according to unidentified sources. The No. 1 source for revenue is, of course, Apple’s iTunes.

First launched in Sweden in 2006, Spotify currently enjoys about 10 million users in the U.S. The company raised more than $100 million in funding last year, and is on track to raise another $220 million at a $4 billion valuation this year.

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