Apple is talking with Comcast about working together on a streaming television service that would use an Apple set-top box like Apple TV, the Wall Street Journal reports. The deal would use Comcast’s cables to bypass web congestion, sources said. Using Comcast as a partner would, ideally, prevent buffering and other service issues that often plague streaming web video. Apple seeks to let users stream live and on-demand TV shows stored in the cloud, thus replacing a traditional cable box.
The report claims that at the moment, Apple and Comcast “aren’t close” to an agreement. Comcast would have to make “significant investments” in network equipment and other technology, while the two companies seem to disagree on which would control customer data — Apple wants people to sign on to the device using its Apple IDs, and the company is asking for a cut of the monthly subscription fees paid by customers. It’s noted that Apple was working on a deal with Time Warner Cable since mid-2012; Comcast’s deal to acquire Time Warner is currently being reviewed by regulators.