Apple share price: Company in talks with Comcast over TV streaming

on Mar 24, 2014
Updated: Apr 9, 2020
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iNVEZZ.com, Monday, March 24: Apple Inc (NASDAQ:AAPL), the world’s most valuable company, is in negotiations with the largest US cable company, Comcast Corp (NASDAQ:CMCSA), over partnering on a streaming-television service that would allow Apple set-top boxes to bypass congestion on the web, according to a report in yesterday’s Wall Street Journal. Citing unnamed sources familiar with the situation, the newspaper said that discussions between the two companies are still at an early stage and many hurdles remain. But the deal, if reached, would mark a new level of cooperation and integration between a technology company and a cable provider to modernise TV viewing.

In Friday’s trading Apple shares closed 0.8 percent higher at $532.87, limiting the stock’s year-to-date decline to five percent. The Comcast share price closed down 1.2 percent at $50.
**‘Last mile’**
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. According to the sources cited by The Journal, the tech giant wants the new service’s traffic to be separated from public internet traffic over the ‘last mile’ – the portion of a cable provider’s pipes that connect to people’s homes.

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That stretch of the Internet often gets clogged up when users in a region try to access too much bandwidth at the same time. A deal with a cable operator would allow Apple to bypass this issue.
The two companies share a common goal in advancing set top boxes so that television becomes more comparable to the easy-to-use streaming video service that is increasingly popular amongst consumers. However, at the moment, the companies are not close to an agreement, one of the sources said.

**Apple TV**
According to media reports earlier this year, Apple has been in negotiations with Time Warner Cable, the second-largest US cable company, about delivering media content for a new version of Apple TV – Apple’s set-top box – which the company reputedly plans to unveil later this year (Apple share price: Company to introduce faster TV box by April). Time Warner Cable recently agreed to be bought by its larger US peer Comcast.

Apple’s $99 TV box is competing in the market with similar devices such as Google Inc’s recently released Chromecast, and Microsoft’s video-gaming console Xbox One, which also has video-streaming capabilities.
**As of Friday’s US close buy Apple shares at $532.87**
**As of Friday’s US close sell Apple shares at $532.87**
**As of Friday’s US close buy Comcast shares at $50.00**
**As of Friday’s US close sell Comcast shares at $50.00**

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