The service, called Lionsgate Entertainment World, will offer video subscription services for China. Users in China only need to connect Alibaba's latest set-up box to their television to enjoy the service.
According to the agreement, Lionsgate Entertainment World will provide Chinese users with more convenient services for watching Hollywood films online, Alibaba said.
Box-office hits such as Divergent, Twilight and The Hunger Games, as well as popular TV series including Mad Men and Weeds will be available on the platform.
China's film and TV industries have been growing at a fast pace, compared with other markets worldwide. By entering into a partnership with Alibaba, Lionsgate is expected to quickly penetrate the vast Chinese market.
Lionsgate surpassed 21st Century Fox and Paramount Pictures in box office performance in 2013 to become one of the top-five film and TV production companies in the United States.
Liu Chunning, who heads Alibaba's digital entertainment business, said Alibaba has been devoted to building a new ecosystem in the entertainment business that fits the culture of the internet era and that the company is committed to providing a large variety of digital entertainment services for its users.
Jack Ma, Alibaba's founder and executive chairman, had previously said that China needs to have a Chinese version of Warner Bros. On April 8, Ma and his partners paid 6.5 billion yuan (US$1.06 billion) for 287 million shares, or a 20% stake in Changsha-based Wasu Media.
On April 28, internet video streaming company Youku Tudou said in an announcement that it plans to enter into a strategic partnership with Alibaba, which now owns a 16.5% stake in the company. In addition, Alibaba officially became the largest shareholder in ChinaVision Media Group Limited in late June.