Late yesterday, Yahoo! and MLB Advanced Media, LP, announced that Yahoo! will be the home of MLB.TV and that both companies will share in the advertising revenue. Details from the press release:

Yahoo! (Nasdaq:YHOO) and MLB Advanced Media, LP (MLBAM), the interactive media and Internet company of Major League Baseball, today announced a three-year video and advertising partnership that includes access to out-of-market MLB games on Yahoo! Sports. The agreement will make MLB.TV available on Yahoo! Sports, bringing Yahoo! users more than 2,400 out-of-market Major League Baseball games each year, live and on-demand, through the 2010 season. Additionally, Yahoo! will exclusively manage online advertising sales for MLB.TV in the 2009 and 2010 seasons. This deal represents a continuation of Yahoo! Sports’ commitment to delivering the most compelling sports content on the web while significantly increasing the amount of high-quality video advertising inventory available to Yahoo! advertisers.

The benefits of this partnership are easily apparent. MLB takes advantage of Yahoo’s video engine and ad management platform. Yahoo! Sports gets more traffic and over 1 million subscribed MLB.TV users. Current Yahoo! users now have access to over 2,400 out-of-market games. That 1 million number is impressive considering the subscription costs almost $120 a year. It would be interesting to see a league go with all games in a season hosted on their site, with ad revenue as the business model as opposed to subscription.