Sony BMG, Yahoo Enter Licensing Deal

Yahoo and Sony BMG enter deal Sony BMG Music Entertainment has gotten into a licensing agreement with Yahoo Inc., which will enable users to upload files comprising of music or video content by the record company’s artists to Yahoo.

According to Yahoo, under the deal, Sony BMG will receive a cut of advertising revenue.

The pact also includes the distribution of music videos via Yahoo player applications and widgets that computer users can place on other websites.

The latest agreement is evident of the fact that computer user-created videos that often include copyrighted content are becoming increasingly popular.

Though this is the very first time that Yahoo has inked a deal with a leading recording company over licensing content in user-created videos; a deal of a very similar nature was penned between Sony and Google along with its subsidiary YouTube Inc. last year.

Financial terms of the latest agreement between Sony BMG and Yahoo were not disclosed.