Financial terms were not disclosed, but the companies said Sony BMG would get a cut of Yahoo!'s advertising revenue.
The deal lets users include Sony BMG songs in any user-created video file they upload to a Yahoo! site.
It also legalizes the digital transfer of Sony BMG music videos with Yahoo! player applications and widgets to other Web sites.
The deal -- the first time Sunnyvale, Calif., Yahoo! reached an agreement over licensing content in user-created videos -- is similar to a deal Sony BMG reached with Google Inc.'s YouTube video-sharing Web site Oct. 9, 2006.