SEOUL -- Samsung Electronics' smart TVs will offer movies and TV programs on Apple's iTunes from spring as both companies join hands to fight dwindling profits.
Samsung said Sunday that Apple accepted its offer of a partnership as both companies will benefit from the deal. Under the partnership, Samsung smart TVs will also support Apple's AirPlay 2 from this spring.
"The cooperation [between Samsung and Apple] is a win-win strategy. Apple's numerous contents will draw more customers," Han Jong-hee, president of Samsung Electronics, told reporters ahead of the CES exhibition, a consumer technologies trade show to be held in Las Vegas from Jan. 8 to Jan. 11. "Apple can spread its contents, while we can launch our own business if Apple's contents are accumulated."
Apple said its customers will benefit from Samsung's lead in the smart TV market. "So iPhone, iPad and Mac users have yet another way to enjoy all their favorite content on the biggest screen in their home," said Eddy Cue, senior vice president at Apple.
The rivals formed this partnership against a backdrop of falling profits. Apple cut its revenue forecast for the fourth quarter to $84 billion from its November statement of up to $93 billion, while analysts expect Samsung's profit to drop more than 10% in the October to December period from a year ago.
Both companies face heightened competition from Chinese smartphone makers such as Huawei Technologies and Xiaomi which are expanding their markets quickly with cheap and high-quality handsets. Slowing growth in China also weighed on iPhone sales in the country.
Samsung shares benefitted from the news, jumping 3.47% to 38,750 won apiece on Monday. Apple shares haven't traded since the announcement on Sunday in the U.S.
Samsung said that with the new iTunes movie and TV program app on the company's smart TVs, consumers can access their existing iTunes library and browse the store to buy or rent from hundreds of thousands of movies and TV programs, including the largest selection of 4K high-definition movies.
With AirPlay 2 support, customers will be able to play videos, photos, music, podcasts and more from Apple devices directly to Samsung smart TVs.