Spotify announced yesterday that the company has entered into a major distribution deal with Yahoo. According to Yahoo, the deal will eventually get the music service in front of 700 million users worldwide.

Yahoo visitors will see Spotify links on the website and they will be able to hit a play button and have the songs playing without leaving the website. But only if they have already downloaded and opened Spotify.

The agreement also includes a bonus for Yahoo. They will earn a commission for all new users that subscribe to Spotify. A new version of Spotify with the Yahoo brand is said to be released later this year.

“We’re participating in providing content, and we’re participating in revenue as well,” says Yahoo Senior Vice President, Jim Heckman

The agreement between the two companies is similar to Spotify’s partnership with Facebook that was signed last year. Spotify spokesman Graham James says the company won’t comment on its financial arrangements.

(via CS)