Shanghai Film Group Corporation, a subsidiary of Shanghai Media & Entertainment Group (SMEG), will provide 18.5 hours of movies and drama each day on the channel.
As SMEG has an existing drama and movie channel, the new service appears to duplicate the broadcaster's offering, running counter to China's drive to consolidate its unwieldy television operations, which has been underway for the past two years.
However, it is understood that the new channel plans to increase the movie component soon after launch, leaving the existing channel to concentrate on dramas.
A spokesperson said the company would start promoting the channel on television and print from the end of this month.
Local shop Tian He Hu Dong has been appointed as its sales and advertising agent. The new service will be pitted against national broadcaster China Central Television's Channel Six movie offer.
Zenith Optimedia China strategic resources vice-president Zoe Tan said: "Channel Six is doing quite well. The launch is a sign that SMEG is following CCTV to build up a media conglomerate."
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