It’s the user-generated part of today’s announcement from Yahoo that’s grabbing people’s attention. Video montages set to music, people lip-syncing to their favorite tunes or local bands covering well known pop songs are popular on sites including user-generated content like Yahoo and YouTube.

The agreement not only licenses the label’s music videos for distribution across Yahoo platforms, but also clears the way for the vids to run on a Yahoo-branded video player.

Although terms of the deal have not been disclosed, ad revenue is expected to be the revenue stream that pays for the alliance.

This is the first deal Yahoo has struck with a major label for licensing music for user-contributed videos. Sony BMG made a similar agreement with Google, owners of YouTube, last year.

“Yahoo is a leading force in Internet entertainment, and they are an important part of our overall strategy to make our artists’ music videos widely available,” said Thomas Hesse, President of Sony BMG’s Global Digital Business and U.S. Sales. “We are happy to extend our agreement with Yahoo, and look forward to continuing our relationship.”