Apple set for a Deal for streaming-TV service with Comcast

Apple Inc is in talks with Comcast Corp to enter into a deal for a streaming-television service that would use an Apple set-top box and gain special access on Comcast’s cable to ensure it bypasses congestion on the web. 

The discussions are still believed to be in early stages and there are a lot of hurdles to be crossed before the two parties can reach any definitive agreement.

 “Apple must acquire significant TV programming rights from media companies,  Comcast would want to ensure that the price Apple has to pay to acquire rights wouldn’t cause the service to be priced higher than traditional pay-TV service,” a spokesperson said according to Wall Street Journal

Apple wants the new TV service’s traffic to be separated from public Internet traffic over the ‘last mile’ because it would benefit from the cable company.

Time Warner Cable Inc, which agreed recently to be bought by Comcast, has been locked in talks with Apple to obtain a faster TV set-top box. Apple’s 99 dollar TV box competes with other similar streaming devices from Google Inc and Roku.

As of February, Netflix agreed to pay Comcast Corp more to access faster internet speeds. There is also an open possibility that more content companies will have to shell out more for better services.

The FCC is in the process of drafting a new ‘net-neutrality’ proposal as part of its review of the Time Warner Cable that would ensure that network operators disclose exactly how they manage the Internet traffic and that they do not restrict consumers’ ability to surf the Web.