Vivendi-owned UMG joins record-label peers EMI, Sony and Warner in partnering with US-based imeem to let songs and videos be played online in exchange for percentages of advertising revenue.
While financial details of the UMG deal were not released, the studio will reportedly also get paid every time one of its songs is played.
Sony, EMI and Warner made similar arrangements with imeem earlier this year.
"Imeem has developed an innovative way to make our artists' music a central part of the social-networking experience," UMG chief executive Doug Morris said in a statement.
"More importantly, they've done so the right way -- by working with UMG to provide an exciting musical experience for consumers, while ensuring that our artists are fairly compensated for the use of their works."
The partnerships with imeem mark changes of course for major music studios, which had tenaciously fought against online sharing of music because of piracy concerns.
Imeem launched its free service in March 2006 and lets members share videos, music, pictures and online diaries referred to as "blogs."
Technology built into imeem allows the site's more than 19 million users view or listen to music and videos but blocks copying the files onto computers.
UMG's catalog of artists includes Kanye West, Amy Winehouse, Fall Out Boy, 50 Cent, Black Eyed Peas, Gwen Stefani, The Killers, Snow Patrol, Maroon 5 and Nelly.
"This is a significant step forward for imeem and a defining moment for social networking and ad-supported music," said the Internet firm's founder, Dalton Caldwell.
Advertisers at imeem include Apple, Nike, Microsoft, Toyota and Puma.

Copyright AFP (Agence France-Presse), 2007