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Warner Music Group

(WMG) - Get Warner Music Group Corp. Report

has struck a video-distribution deal with video-hosting Web site YouTube.

Under the agreement, the library of music videos from WMG's roster of artists will be available for distribution on YouTube, allowing users to incorporate music from WMG's music catalog into the videos they create and upload onto YouTube's site.

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YouTube and WMG will share revenue from advertising on both WMG music videos and user-uploaded videos that incorporate audio and audiovisual works from WMG's catalog.

WMG's music video library and special artist content will be made available simultaneously with the launch of YouTube's content identification and royalty reporting system, which is set for release by the end of the year.

The system will allow media companies -- like record labels, TV networks and movie studios -- to identify their content on YouTube with copyright identification tools and to locate their works within consumers' videos using automated audio identification technology. Media companies will be able to track and report royalties and to monetize the use of their works within the user-generated content on YouTube's site.

Consumer media sites like YouTube "have created a two-way dialogue that will transform entertainment and media forever. As user-generated content becomes more prevalent, this kind of partnership will allow music fans to celebrate the music of their favorite artists, enable artists to reach consumers in new ways, and ensure that copyright holders and artists are fairly compensated," WMG's CEO, Edgar Bronfman, Jr., said in a statement.

Shares of WMG were up a quarter, or 1%, at $24.25 in recent trading Monday.