Sony BMG Music Entertainment and Yahoo Inc. announced Tuesday they reached a licensing deal that will allow Yahoo portal users to upload music or video files from the record label.
The agreement is part of an extension of the current licensing deal between the two companies. The new agreement will give Yahoo access to more music videos, and the right to distribute Sony BMG recordings to more countries around the world.
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, Yahoo Music chief Ian Rogers said.
Financial terms of the deal were not disclosed, but the agreement calls for Sony BMG to receive a share of the advertising revenue. The deal is the first of its kind for Yahoo, and will probably not be the last as some legal issues surrounding digital music remain unclear.
Similar to a current YouTube-Sony deal, Sony will receive a portion of the ad revenue from the pages where its content is displayed. Yahoo agreed to have content from BMG's artists be uploaded to Yahoo's websites and software applications. Among them are media players and widgets that users can place on non-Yahoo sites.
Sony BMG is part owned by Bertelsmann A.G. and Sony Corp of America. The label is home to popular artists such as Britney Spears, Jennifer Lopez, the Foo Fighters, John Mayer and Celine Dion.