Gao says the product is inspired by his overseas career and his observation of China's booming internet industry. He was previously vice-president at Dalian Wanda and interim head of Legendary Entertainment.

"I've spent most of my time abroad over the past three years," Gao says.

"I helped Wanda build the world's largest cinema chain, with 12,000 screens in 15 countries. I was also a part of Wanda's acquisition of Legendary."

Gao discovered that overseas Chinese crave domestic films, which are rarely screened abroad.

China's box office generated nearly 56 billion yuan last year. But only 4.2 billion of that, or nearly 8 percent, came from overseas markets.

About 60 million Chinese live abroad, the State Council's Overseas Chinese Affairs Office's data show.

"The overseas market could be huge," Gao says.

"Chinese who've immigrated to, or are visiting, foreign countries have a stronger sense of nostalgia than compatriots who've remained in China."

Smart Cinema is available in a pre-installed app on phones produced by Huawei Technologies Co Ltd, the world's second-largest smartphone maker.

Over 20 films are scheduled for release on the app for users in Spain and Italy. The digital releases will expand to include more countries in Europe and North America.

The first batch of films targeting Western viewers includes Red Paper-Cut, which centers on a 9-year-old girl with a disability, and Crying to Marry, which recounts the story of a brave ethnic Tu bride, who sacrifices her life to protect Red Army soldiers.

But some industry insiders have expressed their concern that the app may lead to a fall in the number of people who actually visit cinemas.

"There's no need to worry about that," Gao says.