The deal with Citadel Broadcasting will increase the number of radio stations hosted on Yahoo to 450 and will boost its technology that inserts Yahoo advertising over local ads from local stations.
Web radio has been a popular application embraced by AOL Time Warner, Microsoft and other media companies. Many services, such as AOL's Spinner, broadcast their own song lists for free. But the record industry has taken issue with the practice, and has undergone hearings with Web radio broadcasters over royalty rights.
Sunnyvale, Calif.-based Yahoo struck an agreement with the Recording Industry Association of America more than a year ago, allowing it to broadcast live performances of popular music acts online. However, Yahoo's Launch Media subsidiary in May was sued by the RIAA, accused of violating licensing agreements with record labels for offering an unapproved level of interactivity on its LaunchCast streaming software.
Citadel Broadcasting owns radio stations in markets including Oklahoma City, Salt Lake City, Buffalo, N.Y., and Grand Rapids, Mich.