Apple Inc. and Comcast Corp. are discussing the use of an Apple set-top box for a streaming-television service. A deal would let Apple receive special treatment on Comcast's cables so that it wouldn't experience congestion on the Internet, according to the Wall Street Journal.
Apple plans to make the service easy to use for consumers by storing the content on the cloud and having the programs live and on-demand, Business Insider reported. Working with Comcast would help Apple in making sure the TV service stays away from the "last mile", an area in a cable operator's pipes connecting to customers' homes, the Wall Street Journal reported. This area usually becomes packed with too many users trying to access too much content simultaneously.
The negotiations are coming at a time when Comcast has been making plans for business with other companies, according to the Inquirer. The company reached a deal with Netflix in February to improve Netflix's video-streaming service so that customers can view it without issues. Comcast is also looking at a $45.2 billion deal for a merger with Time Warner Cable. Apple has been looking for ways to do business in TV for several years. So far, however, the company has been unable to find a business model that would get a deal with cable providers and media companies.
A deal with Comcast would help Apple because the two companies share the goal of improving set-top box technology so that customers can use TV the same way they use apps and streaming video services, the Wall Street Journal reported. The two companies have yet to reach an agreement, the Wall Street Journal reported.
Comcast would need to make huge investments in network equipment for the service to be delivered. Comcast also does not agree with Apple's plan to have users sign in using Apple login IDs and control customer data. Comcast wants to keep control over customers' relationship with the data.
