Sony BMG Inks Video Deal with Yahoo

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Music label Sony BMG and Internet giant Yahoo have expanded a video-on-demand deal which will enable Yahoo to distribute Sony BMG music videos across Yahoo sites, as well as offer Sony BMG music videos to non-Yahoo sites via an embeddable player.

“Yahoo! is committed to providing our users with the most comprehensive array of entertainment content,” said Yahoo Music general manager Ian Rogers, in a statement. “This partnership not only enhances our video offerings, but also offers Sony BMG artists broad exposure among our global audience of music and entertainment fans.”

Terms of the deal were not disclosed, but Sony BMG will receive a portion of advertising revenue derived from the use of their video and music content. The deal highlights the importance music distributors and other content publishers are placing on the user-generated content space, as represented by sites like YouTube and MySpace. The deal also mirrors a similar arragenment Sony BMG made last year with Google; the company also entered a music and video distribution agreement with MySpace.

In addition to distributing Sony BMG music videos, Yahoo will be able to offer selected Sony BMG music recordings for use in user-generated media. The deal is the first time Yahoo has entered a pact with a major music distributor that includes licensing terms for user-generated content.