Called SEE-1, the module is intended to host films, television, music and sporting events, as well as artists, producers and creatives who wish to create content in a microgravity and low orbit environment.
According to US entertainment magazine Variety, the facility will enable the development, production, recording and live streaming of content.
"SEE-1 is an incredible opportunity for humanity to move into a different realm and begin an exciting new chapter in space," entrepreneurs and producers Elena and Dmitry Lesnevsky said in a statement.
S.E.E. is currently planning a fundraiser.
"From Jules Verne to 'Star Trek', science fiction entertainment has inspired millions of people around the world to dream of what the future might bring. Creating a state-of-the-art entertainment venue in space inspires and opens countless doors to create incredible new content and make those dreams a reality," S.E.E CEO Richard Johnston noted to Variety.
The British company noted that SEE-1 will "provide a unique and accessible home for limitless entertainment possibilities in a place filled with innovative infrastructure that will unleash a new creativity."
SEE-1, which will be built by US company Axiom Space, will enable the expansion of the $2 trillion (about €1.77 trillion) global entertainment industry into low orbit.
"Axiom Station, the world's first commercial space station, is designed as the fundamental infrastructure that enables a diversified economy in orbit," said Axiom Space CEO Michael Suﬀredini.
He added: "adding a dedicated entertainment venue to Axiom Station's commercial capabilities in the form of SEE-1 will expand the station's utility as a platform for a global user base and highlight the range of opportunities that the new space economy offers."
"SEE-1 will showcase and leverage the space environment in an unprecedented way," stressed Axiom chief engineer Michael Baine.