In another sign that corporations are taking over Internet radio, Yahoo! executives say burdensome royalties drove the company to hand over the reins of its webcasting pioneer property LAUNCHcast Radio to CBS Radio.
The companies announced the deal today.
“Because of the unfavorable rates, we didn’t think it made sense to invest in the product,” admitted Yahoo! Music chief Michael Spiegelman.
Beginning in February, CBS Radio will stream the 150 Yahoo! Internet radio channels alongside its own combination of the 150 online simulcasts of its AM and FM properties and the over 200 AOL Radio channels the broadcaster took over in June.
CBS Radio sales teams will also now handle all ad sales for Yahoo! streams.