Thread

Why is Apple considering China Mobile as a partner for distributing Apple TV+ in China, as opposed to other potential partners?

Apple is considering China Mobile as a partner for distributing Apple TV+ in China for several reasons:

  1. Government-backed company: China Mobile is a government-backed company, which gives it an advantage when dealing with regulators in China. This could help smooth the process of launching Apple TV+ in the country.

  2. Largest mobile phone carrier: China Mobile is the largest mobile phone carrier in China, with nearly 1 billion customers. This presents a huge potential market for Apple TV+, as many of these customers already pay for traditional TV services through a digital set-top box.

  3. Existing partnership: Apple has previously partnered with China Mobile to sell iPhones in 2013, which helped Apple grow its sales in China. This existing relationship could lead to synergies and make it easier to launch Apple TV+ with China Mobile.

  4. Compliance with Chinese law: Chinese law generally prohibits foreign companies from offering their streaming services directly in the country(4). By partnering with China Mobile, Apple could potentially distribute its content through the China Mobile set-top boxes that are part of the broadband services, in compliance with Chinese regulations.

In summary, Apple's choice of partnering with China Mobile is based on the company's government backing, its large customer base, an existing partnership with Apple, and the ability to comply with Chinese law on streaming services.