Yahoo and Spotify are getting together. That may seem like an odd pairing, but Yahoo has size (yes, even now) and Spotify is hungry for it. The Spotify "web player" will be integrated across the myriad of Yahoo services and Yahoo will "promote" the music service.
"Spotify will initially roll out to Yahoo! Music and later will be contextually integrated globally across the rest of Yahoo!, including its leading entertainment sites, like Yahoo! Movies and omg!," Yahoo said.
"In turn, Yahoo! will create an app for Spotify's platform featuring Yahoo! original entertainment content, which will reach Spotify's more than 10 million active users," it explained.
That sounds great for Spotify. Yahoo may be old, slow and has no idea where it's going, but if there's one thing it's got, it's inertia. Hundreds of millions of people visit Yahoo every month.
What's more, most of those hundreds of millions aren't from the tech-savvy crowd that already has Spotify or at least has heard of it.
If Spotify ever wants to scale tremendously, and it desperately wants that, it's going to need to convince the average Joe to sign up. A first step in doing that is making sure the average Joe hears about it.
Of course, all of this begs the question, what's in it for Yahoo? Well, it's simple, money. It seems that Yahoo cut a revenue deal with Spotify and each user that signs up via Yahoo will mean a referral fee for the internet giant.
"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," Daniel Ek, CEO and founder of Spotify, said.
"We are really excited about the new Yahoo! leadership team and thrilled to partner with them to build great experiences around high quality content," he added.