KUALA LUMPUR (June 1): Mobile technology solutions provider AppAsia Bhd has teamed up with Hong Kong-based China Mobile International Ltd to expand its digital video content business in China and other overseas markets.

In a filing with Bursa Malaysia today, AppAsia said its wholly-owned subsidiary AppAsia Studio Sdn Bhd has entered into a memorandum of understanding (MoU) with China Mobile for the purpose.

Under the MoU, China Mobile will leverage AppAsia Studio's content resources and distribute the content in the form of digital video on Migu and other related content platforms, including but not limited to mobile apps, personal computer and internet protocol television.  

"AppAsia Studio's role is a content provider to China Mobile," said AppAsia.

"AppAsia Studio will evaluate, supply and manage the content for the distribution of the same on the platform. The business model between the parties will include but [is] not limited to revenue sharing, one-off purchase or mixed model, subject to China Mobile and content/IP owner commercial decision by project and region on a case-by-case basis.

"For revenue sharing model, China Mobile will act as content distributor and payment gateway for end-user billing payment and settlement for AppAsia Studio," added AppAsia.

AppAsia said the MoU is valid for a period of three years.

At 2:50pm, AppAsia shares were down 0.5 sen or 1.33% at 37 sen, with 154,200 shares done, for a market capitalisation of RM106.19 million.