The domestic entertainment industry has recently become another battlefield for the three leading Internet companies - Baidu, Alibaba and Tencent. By charging into this sector, these companies could not only expand their presence in the booming mobile Internet segment but also enhance user loyalty by associating themselves with appealing content and celebrities.

Alibaba currently seems to be the most active combatant. Its latest push into the entertainment arena came in late April with an announcement that it was taking over a 16.5 percent stake in the country's leading online video providerYouku Tudou Inc.

Together with Alibaba's two main online shopping platforms - taobao.com and tmall.com -Youku Tudou could become an important pipeline for content produced by Alibaba. Similarly,Youku Tudou can help promote items sold by Taobao and Tmall retailers.

The company had previously broadened its portfolio into film and TV production by acquiring a 60 percent stake in a Hong Kong-listed film production and distribution company, ChinaVision Media Group, for HK$6.24 billion ($804.1 million) in March.

Alibaba also hired Liu Chunning, former general manager of Tencent's online video section, as president of its digital and entertainment division last year. Liu has already helped his new boss launch a mobile gaming platform in early January.

With hundreds of millions of people on the Chinese mainland regularly using their mobile devices to watch videos and play games, companies like Alibaba can substantially increase their user bases in the burgeoning mobile market by dipping their toes into entertainment-themed businesses such as video streaming or film and game production.

Data from iResearch estimates that the country's mobile Internet market could be worth 185.7 billion yuan ($29.7 billion) this year, and this sum could push to nearly 600 billion yuan by 2017.

In order to seize opportunities in the mobile Internet segment, Tencent and Baidu are also carving out their own territories in entertainment fields. And the two appear to have gained an early leg up over Alibaba.

Back in 2010, well before Alibaba established its own entertainment unit, Baidu helped launch online video platform Qiyi. The top search engine then became a majority shareholder in the platform - which was renamed as iQiyi - in late 2012. Later, in May 2013, Baidu went on to buy iQiyi's rival PPS for $370 million, a deal which made Baidu the third largest online video provider on the Chinese mainland in 2013 - afterYouku Tudou and Sohu - in terms of user visits.

But Tencent entered the entertainment arena even ahead of Baidu with its early foray into the gaming field. Its 11-year history as a digital game operator has helped the company build up a loyal base of followers. This success has come despite the fact that its online video unit has not proven nearly as popular as its gaming section.

To strengthen its video operations though, Tencent reportedly plans to become the second largest shareholder of KeyEast, a South Korean TV producer and artist management agency that has cultivated famous artists such as Kim Soo-hyun, who recently rose to stardom thanks to his role in the TV seriesYouWho Came From the Stars.

Following the news, Baidu announced this month that it would cooperate with one of the largest record companies in South Korea, SM Entertainment, in a deal that will reportedly see Baidu and iQiyi distribute SM's music and music videos in the domestic market. The two can also capitalize on the popularity of K-Pop music among young Chinese fans in order to cement user loyalty and drum up sales of paid content.

Alibaba looks eager to build celebrity appeal as well. In March it rolled out Yulebao, a crowd-funding platform that allows users to invest in development-stage games and movies. According to reports, individuals who contribute more than 100 yuan qualify for chances to visit film sets or meet with top celebrities.

Without a doubt, the entertainment industry is heating up thanks to these three leading Internet companies. But these three, of course, have their own barriers to conquer before they can really think about reinventing the industry.

Latecomer Alibaba will need time to digest and integrate the assets it just acquired. And although Baidu has strong distribution channels, the company has yet to totally monetize its self-owned music, video and mobile gaming content, a situation which leaves it largely reliant on advertisements for the bulk of its revenue. Meanwhile, Tencent should think about combining its successful gaming business with its popular messaging app WeChat so as to consolidate its current foothold in the mobile era.

The author is a reporter with the Global Times.