Yahoo! launched a new version of Yahoo! Music this week. And its choc full of links to external services like Last.fm, Pandora, and YouTube. There are also links to other Yahoo! services like Flickr. Last year Yahoo! killed off its LaunchCast streaming radio service.

By linking out to sites that specialize in selling music downloads (including Amazon and iTunes), and sites that offer music videos (including YouTube), Yahoo! can focus on creating a one-stop shop for music without working out licensing deals with artists, which gets pretty expensive.

Yahoo! also plans to open its API to allow other msuic services to build applications that can be integrated with the Yahoo! Music web page.

[via Wired]