We are excited to launch a record label that will once again put Nickelodeon in the leadership position in entertainment for kids and tweens

Albie Hecht Nickelodeon

Jive's current artists include Britney Spears, Backstreet Boys, Steps, 'N Sync and R. Kelly.

Under the agreement, the two companies will collaborate on the marketing, promotion and distribution of releases, with Nickelodeon providing television advertising, says the paper.

The first album from the two companies is to be the soundtrack to upcoming computer animated film Jimmy Neutron: Boy Genius.

Aaron Carter, a Jive Records artist, is providing several songs for the film and album.

'Vibrant'

"Music plays a vibrant part in the lives of our audience," said Albie Hecht, president of Nickelodeon film and entertainment.

"We are excited to launch a record label that will once again put Nickelodeon in the leadership position in entertainment for kids and tweens."

The two companies had already agreed several cross-promotions before the deal was officially announced.

Nickelodeon is sponsoring Aaron Carter's current summer tour, and Jive and Nick records already have a joint release of a CD of music from Nickelodeon cartoon SpongeBob SquarePants in the works.

Disney is another TV and film giant with its own record company, Walt Disney Records.

However the Disney Channel has cut back on promoting teen artists, and is no longer producing concert specials on its channel.