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The deal predictably covers the posting of music videos from WMG's stable of artists such as Madonna as well as behind-the-scenes footage, artist interviews, original programming and other 'special content'. An interesting twist, however, is that the deal also allows YouTube users to incorporate copyright WMG music into the videos they create and upload onto YouTube.

This will be seen as a bold move as some of the music and the artists will undoubtedly be treated with less than the reverence that Warner might prefer for its catalogue. If anything does 'offend' the artist, WMG will be able to request the removal of copyrighted content from YouTube when an artist asks to remove it.

This is line with the safe harbour provisions in the Digital Millennium Copyright Act, which

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means that sites such as YouTube can keep just the right side of the law by acting promptly to remove unlicensed copyright material once identified.

To assist this process, YouTube is developing a new content identification and royalty reporting system which will allow copyright holders the ability to track and identify their work on the site for those all important royalties.

No details of the financial arrangements of the deal have been revealed and the Warners content will not be made officially available until the new content system is live at the end of this year.

The agreement is a coup for YouTube as it begins to deliver on its promise to host every music video ever made on its service.

The agreement appears to put Warner at odds with rival Universal who is reported to be preparing to sue YouTube for copyright infringement claiming the site owes the company 'tens of millions'. However, this is seen by many as a negotiating ploy to get a better deal from YouTube.

Also likely to feel cold shouldered is Time Warner subsidiary AOL who probably will want to develop its own video service, which currently consists of old Warner clips to challenge YouTube as a social networking site for budding film makers.