It has also just signed a deal with Spotify that will see the digital music service being ‘integrated’ across Yahoo’s media network. Yahoo will also create a Yahoo-branded app for Spotify’s platform later this year. It means people can listen to Spotify while on Yahoo sites and create soundtracks as they come across artists and bands. Spotify, however, is still not available in Ireland, despite reports that it is in talks with Irish ISPs and other reports suggesting it will open an office in Dublin.
Daniel Ek, chief executive and founder of Spotify, said in a statement, “We are really excited about the new Yahoo leadership team and thrilled to partner with them to build great experiences around high quality content.”
It will be interesting to see if this deal has any impact in reversing Yahoo’s recent bad fortunes. However, a Yahoo app on the Spotify platform should drive more traffic to Yahoo sites. Spotify is now the No. 2 revenue source for the major music labels behind Apple’s iTunes. The music streaming service is currently raising $220 million at a $4 billion valuation. Goldman Sachs is investing $100 million in it, so that’s quite a vote of confidence in itself.