"This is not an advertising deal," said Coca-Cola head of global sports and entertainment marketing Emmanuel Seuge during a press event in New York City.
"The way we engage with our consumers has to go way beyond the logo."
Spotify will provide the technology to power Coca-Cola Music offerings and be integrated into the global beverage company's Facebook pages.
"Coca-Cola is the most recognized and respected brand in the world and we
are proud to be their music partner," said Spotify founder and chief executive
"Spotify and Coca-Cola both believe that music, technology and creativity can connect people around the globe."
Coca-Cola boasted that using music to connect with young customers has been a big part of the company's 126-year history, dating back to branded sheet music in the late 19th Century and sponsoring on-air shows when radio ruled.
The partnership will include Coca-Cola software applications that tap into the Spotify platform. The first new "app" will be unveiled for the 2012 Olympics in London, according to Coca-Cola.
Spotify, which was launched in Ek's native Sweden in 2008, boasts a library of 15 million tracks and is adding about 20,000 a day.
The music streaming service is available in a dozen countries in Europe and launched in the United States in July.
Spotify touts having more than 10 million active users and 2.5 million paying subscribers.
Spotify offers three services: a free, ad-supported streaming service, an ad-free $4.99 a month plan for computer listening, and a $9.99 a month plan allowing subscribers to download as many songs as they want to a mobile phone.