Yahoo Partners With Spotify For On-Demand Music, Leaves Rhapsody
Yahoo Partners With Spotify For On-Demand Music, Leaves Rhapsody

LOS ANGELES (AP) -- Yahoo is ditching its provider of on-demand music, Rhapsody, for a similar service provided by Swedish subscription-music service Spotify.

The changes to the Yahoo Music site are expected to be complete by early Wednesday. Spotify's rollout across the rest of Yahoo will take longer. Rhapsody had been a Yahoo partner since February 2008.

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Yahoo visitors will soon be able to hit a play button and have songs play without leaving the website, while the previous incarnation required users to navigate away from the page, said Yahoo spokeswoman Lisa Goodwin.

Yahoo Inc. will also create an app for the Spotify platform that will provide original content like artist profiles.

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Spotify is free on computers but users who pay $10 a month can choose songs for playback on mobile devices.

According to a report on All Things D the deal will put Spotify before Yahoo!'s 700 million worldwide users -- far more than its current 10 million active users. Yahoo! stands to get a portion of revenue from new Spotify subscribers. Yahoo! strategy SVP Jim Heckman, told ATD that the company is "participating in providing content, and we're participating in revenue as well," but didn't explain the exact financial terms of the deal.

(Additional reporting by Andy Gensler)