Apple in Talks With Comcast About Streaming Television Service?

Apple is in talks with Comcast about a streaming television service, reports the WSJ. The service would use the Apple TV set-top box and get priority service on Comcast's network to bypass net congestion, according to sources.

The discussions between the world's most valuable company and the nation's largest cable provider are still in early stages and many hurdles remain. But the deal, if sealed, would mark a new level of cooperation and integration between a technology company and a cable provider to modernize TV viewing. Apple's intention is to allow users to stream live and on-demand TV programming and digital-video recordings stored in the "cloud," effectively taking the place of a traditional cable set-top box.

Apple has been pursing various avenues to enter TV; however, media companies and cable companies are hesitant to let Apple into their market. The company is not yet close to an agreement with Comcast who would need to make major network investments to meet Apple's desired service quality.


There are other issues that need to be addressed as well. Both companies want control of customer data. Apple wants a cut of the monthly subscription fees paid by customers and Comcast wants to ensure that the programming rights Apple acquires from media companies aren't at a level that would cause the service to be priced higher than traditional TV.

Apple was reportedly in discussions with TWC about the service until Comcast made a deal to buy the company.

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