The visual effects house behind Titanic and Transformers aims to change how Chinese audiences see videos and movies by bringing its virtual-reality technology to the world's second-largest film market.

Digital Domain Holdings Ltd, owner of post-production studio Digital Domain, partnered with leading Chinese video-streaming provider Youku Tudou Inc, to tap into Chinese consumers's growing desire for VR-enabled watching experience.

Under a three-year deal, the Hong Kong-listed firm will create VR content for all of Youku's online and mobile broadcast channels in the China market. The two sides will also jointly develop intellectual property business and 360-degree live-streaming and other immersive media experiences.