The US record label said the venture with the Chinese tech giant will help make its artists like Dua Lipa and Ed Sheeran "impossible to ignore".
The companies have also launched a record label to develop artists together.
Rivals Universal Music and Sony Music have also struck similar deals with Tencent as they look to crack China.
While China boasts nearly a fifth of the world's population, it accounted for less than 3% of the $20bn (£14.4bn) in global revenues made last year by record companies.
However, it is a fast-growing market thanks to the rise of streaming services such as those owned by Tencent and fellow tech giant Alibaba.
Tencent Music Entertainment (TME) is the largest music company in China and owns the country's top-three streaming platforms QQ Music, KuGou and Kuwo.