• by Mark Walsh  @markfwal, June 26, 2012

Yahoo hasn’t had much to brag about in recent years when it comes to music, but a new partnership with Spotify could help to improve the Web portal’s appeal in that area. Under their agreement, Spotify’s on-demand music service will initially be offered within Yahoo Music before being rolled out across other Yahoo properties like Movies and omg!

Besides giving Spotify access to its audience of 700 million worldwide, Yahoo will also create a branded app for Spotify’s platform featuring unspecified original entertainment content.

"Delivering compelling premium experiences across screens is core to our mission at Yahoo!. Spotify is the leader in the digital music field and together we can provide the ‘soundtrack’ for users around the world," said Ross Levinsohn, Interim CEO, Yahoo, in a statement.

The move could also help Yahoo better compete for Web music listeners with the likes of Facebook, where Spotify is already integrated. Yahoo’s announcement on Tuesday didn’t include any financial terms of the deal or indicate exactly how users would access Spotify on the site.

But according to AllThingsD, Yahoo users will see links to Spotify songs but only be able to actually play music if they’ve download and opened the Spotify client. Yahoo will earn a commission on any new subscribers it brings in for Spotify, but ad revenue won’t be shared.

Spotify, with 10 million active users, gets most of its revenue to date by charging a $9.99 monthly subscription. But its launch last week of a free, ad-supported mobile radio service could help increase the share of sales it gets from advertising.