The alliance is designed to enhance existing customer offerings and to further develop the entertainment sections of News Ltd's interactive news and current affairs website, News.com.au.
"This deal will create a significant partnership for both News Interactive and ChaosMusic," said Rob Appel, CEO of ChaosMusic. "The partnership will result in a number of excellent opportunities for content distribution."
Bruce Dover, general manager of News Interactive, concurred: "This alliance gives News.com.au an opportunity to cross-fertilise customers and content with ChaosMusic. Our news site is expanding into a variety of areas and this partnership lets us offer outstanding quality (in) entertainment and music."
The alliance will see ChaosMusic delivering the latest news in music and entertainment exclusively toNews.com.au, although News.com.au will not be returning the favour. ChaosMusic will benefit because "News (Interactive) will give us access to their user base and the chance to piggyback off their aggressive marketing spend", Appel said.
Additionally, the two parties will create an email service to provide subscribers with daily news. TheNews.com.au site will also feature reviews of the latest product releases and an interactive Top 5 chart for music, DVDs and games distributed via ChaosMusic's ChartZone daily charts system.
Appel said that News.com.au seemed like a natural choice for ChaosMusic. Internet market research company Red Sheriff, formerly IMR Research, has ranked News.com.au as one of the top three visited sites in Australia, he said.
"We have deals with almost (all) of the major portals due to our prime mover advantage in this market --there really was no (competitor) to ChaosMusic two years ago so the portals tended to come to us," Appel said.
"We are now in a more competitive environment and we have to consider which portals are likely to deliver the most to Chaos. In our view, News Interactive is on a very steep growth pattern and our relationship with them is fresh, meaning that their users are not already familiar with our product as is the case with some of the other portals."
Appel said it is likely the 12-month agreement between ChaosMusic and News.com.au would be extended in the future.