By Stephen Nakrosis

Tencent Music Entertainment Group and Universal Music Group said Monday they would be forming a joint venture music label to develop and showcase domestic artists in China.

The two companies also announced a multi-year extension of their licensing agreement.

The extended licensing agreement will see Tencent Music continue to distribute music from Universal across its platforms, including QQ Music, Kugou Music and Kuwo Music, and also license content for its online karaoke platform, WeSing.

"UMG and TME have been working closely to reinforce a sustainable music licensing ecosystem in order to help support the industry's evolution in China," the companies said. 



  --Write to Stephen Nakrosis at stephen.nakrosis@wsj.com