The Chinese government allegedly suspended the partnership between Alibaba and Disney, affecting the broadcast of video-on-demand service DisneyLife. 

The collaboration was intended to bring Disney characters to China via Disney movies and back catalogs.

According to The Wall Street Journal, the move underlines China's growing attempts to have tight reins on online content. However, Alibaba Group Holding Ltd. merely said that DisneyLife is down for a service upgrade. Insiders say that the service was held back at the request of Chinese authorities. The customers are likely to get their money refunded.

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The move comes on the heel of recent Chinese directive to put Apple's iBook and iTunes Movies on hold.

Disney and Alibaba entered into a partnership in December last year. The collaboration involved launching on-demand streaming service, DisneyLife, in China. The joint project also put its connection device, used for accessing Disney content, on sale through Tmall, Alibaba's online shopping site. This Mickey Mouse shaped device is priced at 799 Yuan, which roughly equal $123.

Disney started the same service in the UK last year, before moving to cover China as well. it partnered with Alibaba  to overcome the barriers placed to control foreign TV networks from operating in the country. Regulatory framework is one of the reasons why on-demand services such as Netflix have yet to arrive in China.

DisneyLife used app based approach in the UK but in China, it required a separate Mickey Mouse shaped set top box. The multi-year license agreement with Alibaba included both Disney and Pixar's back catalogs. It also extended to ebooks, animation series, songs and games etc.

Both Alibaba and Disney representatives declined to elaborate on the matter.

TagsDisney, DisneyLife, Alibaba, Tmall