Loudeye strikes AOL music deal

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(IDG) -- Loudeye Technologies Inc. on Wednesday said it had struck a deal to provide America Online, the Internet unit of the world's largest Web and media company, AOL Time Warner Inc., with music services.

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Shares of Loudeye climbed 40 percent, or 43 cents, to $1.51 in late morning trade but were still off about 90 percent from year-earlier levels.

Under the multi-year pact, Loudeye will offer AOL music samples and digital media services to support digital music content across certain AOL properties such as its Internet radio service Spinner.com. Seattle-based Loudeye will also provide the technology to encode Spinner's music library into digital form. (AOL Time Warner is the parent company of CNN.com.)

The company has struck similar pacts with other companies, including EMI Recorded Music and Sony Music Entertainment earlier this month.