Bebo has signed another promotional deal for its online soap opera KateModern, this time with Warner Music Group’s (NYSE: WMG) Atlantic Recordsdivision. Atlantic band The Days will be “integrated into selected episodes” of the drama - not unlike how bands appeared on television shows like the now-defunct The OC. The three-month promotion is scheduled to coincide with the band’s forthcoming EP release and will include “embedded purchasing opportunities.” Under the deal, Bebo will also include music from other Warner musicians. Financial terms were not disclosed.

Following in the foosteps of her big sister Lonelygirl15, who shilled Neutrogena and Ice Breakers Sours Gums, KateModern has recently taken product placements for Orange, MSN, Procter & Gamble and Paramount Pictures, as the LG15.com wiki points out.

The deal underscores Bebo’s attempts at pushing new revenue streams into its social network; and how music labels, facing huge declines in sales, are keen to show they are up with the times by appearing in internet-based entertainment aimed at their target audience. But I wonder if KateModern’s viewers will question the integrity of a program that is built on user-generated content that also allows for for-profit product placement.