Will Alibaba (BABA) Stock be Helped by Pay Video Subscription Service?

NEW YORK (TheStreet) --Alibaba Group (BABA) said it's planning to launch a pay to watch video streaming service called Tmall Box Office in China in two months, The Wall Street Journal reports.

"We aim to become [the equivalent of] Time Warner's (TWX) HBO and Netflix (NFLX) in the U.S.," Liu Chunning, Alibaba's Digital Entertainment Unit president said, according to The Journal.

Alibaba will offer the service through a set-top box and smart TVs that carry its operating system.

The service will mostly offer foreign and local films as well as TV content. Alibaba will also stream its own original content, The Journal said.

One of the service's first original shows will be a crime drama similar to those watched in the U.S. While 90% of the service will be paid, viewers will be able to access the crime drama for free.

Shares of Alibaba are down by 0.45% to $86.21 in pre-market trading on Monday morning.

BABA Chart BABA data by YCharts

More from Markets

Video: You Could Live in a Ritz-Carlton or St. Regis Home

Video: You Could Live in a Ritz-Carlton or St. Regis Home

Stocks Trade Mixed, Energy Shares Fall on Sharp Drop in Oil Prices

Stocks Trade Mixed, Energy Shares Fall on Sharp Drop in Oil Prices

Component Stocks Rise After Trump Reverses Decision on ZTE

Component Stocks Rise After Trump Reverses Decision on ZTE

Crude Slides as Russia Eases Cuts and U.S. Oil Producers Boost Rig Count

Crude Slides as Russia Eases Cuts and U.S. Oil Producers Boost Rig Count

Best Buy's Billionaire Founder: We Were 'Late to the Game' in Online Shopping

Best Buy's Billionaire Founder: We Were 'Late to the Game' in Online Shopping