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Apple in Talks With Comcast for Set-Top Box Video Service, Report Says

The never-ending rumors surrounding a possible Apple smart TV are likely to ramp up once again in the wake of a report that Apple is in talks with major U.S. cable provider Comcast to create a streaming TV service

According to the Wall Street Journal, citing sources familiar with the matter, the service would include an Apple set-top box that would allow for special access on Comcast's backend equipment, thus bypassing typical Internet congestion.

See also: The Comcast-Netflix Deal: Fact vs. Fiction

The major features of the Apple/Comcast service would reportedly include streaming, on-demand video and video recordings stored in the cloud.

A key component of the reported deal has to do with the delivery of video content. According to the report, Apple would not ask for preferential treatment on Comcast's pipes. The Wall Street Journal report states:

Under the plan Apple proposed to Comcast, Apple's video streams would be treated as a "managed service" traveling in Internet protocol format—similar to cable video-on-demand or phone service.

That particular detail would be key to any potential deal as Comcast has been under the spotlight in recent months over net neutrality concerns.

Fears that Internet access companies will cut lucrative deals with deep-pocketed companies for premium access, thus handicapping smaller companies without the financial heft to pay for premium access, have been the main topic of debate in recent months as streaming content continues to take center stage.

However, according to the report, the two sides aren't close to sealing the deal, and if a deal were to take place, Comcast would need to make major new investments in its networking infrastructure.

BONUS: What is Net Neutrality?

 


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