Online giant Yahoo! has struck a deal with the world’s two largest music companies – Vivendi Universal and Sony – to deliver music via the web.
As from this summer, the portal will promote the online music subscription service owned by Duet, an internet joint venture between the two music mammoths. The service, which includes music from artists such as Eminem and the rather less controversial Bruce Sprinsteen, will be given a preferential location on Yahoo!’s website.
The deal gives Vivendi a long-sought-after distribution centre in the US. Commented Jean-Marie Messier, the media group’s chief executive: “We will have 47 per cent of the US music market online…today, online music has become a legitimate business.”
The venture also provided Yahoo! with some much-needed good news following a troubled few weeks. Its shares jumped 24% yesterday to close on $15.44.
News source: Financial Times