Apple reportedly held talks with telecoms giant China Mobile, with a view to launch Apple TV+ in China, according to The Information. If a deal is struck, Apple TV+ would be the only US streaming service to have a presence in China.
Chinese law typically prevents US services from distributing their content directly. The Information says the proposed deal would see China Mobile offer Apple TV+ for a monthly fee, and feature its content prominently on China Mobile set-top boxes.
Apple and China Mobile would split the revenue from the arrangement. Talks were said to be underway at the end of last year, but the current status of the negotiations is unclear. Apple apparently wanted to announce the partnership last year, but something fell through.
If a deal was finalized, it would likely not allow for the iPhone TV app to include Apple’s content in the region, as that would violate Chinese law.
Like many emerging markets, content subscriptions services are typically offered at far cheaper prices in China than in the US. Apple Music is less than $2 per month, for instance, compared to $10.99 per month in the US.
It follows that Apple TV+ would also likely be offered at a significantly lower price in China, in part due to weaker consumer pricing power and because of the fact that most of Apple’s content is English-centric.
However, assuming the legal and business operational challenges can be navigated, the potential economic rewards are huge thanks to the sheer size of China’s population. The Information says Apple is also exploring ways to launch other services offerings like Apple Arcade in China as well.
Perhaps with a view that it would launch in China eventually, Apple has careful oversight on how sensitive topics like China are presented in its original content. In a very public spat, Jon Stewart departed his Apple TV+ talk show because Apple resisted coverage of certain politically-charged topics like China.
This is just the latest example of Apple looking for ways to expand Apple TV+’s reach. Last week, we heard that Apple is developing a TV app for Android, another attempt at reaching a new base of subscribers.
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