Apple In Talks with Comcast for Streaming TV Service

Apple (AAPL) is in talks with Comcast to enter into a deal for a streaming-television service that would allow Apple set-top boxes to bypass congestion on the Web, the Wall Street Journal reported, citing people familiar with the matter.

The discussions are in early stages and there are a lot of hurdles to be crossed before a definitive agreement could be reached, the Journal said.

Apple, which wants its TV service's traffic to be separated from public internet traffic over the "last mile" for faster transmission, is looking for special treatment from Comcast's (CMCSA) (CMCSK) cables to bypass congestion, the report said.

Comcast and Apple declined to comment on the report. Apple has been in talks for a faster TV set-top box with Time Warner Cable (TWC), which recently agreed to be bought by Comcast. Apple's $99 TV box competes with similar streaming devices from Roku and Google (GOOG).

Netflix agreed last month to pay Comcast for faster speeds, throwing open the possibility that more content companies will have to shell out for better service.

The Federal Communications Commission is in the process of drafting a new "net-neutrality" bill that would ensure that network operators disclose exactly how they manage Internet traffic and that they don't restrict consumers' ability to surf the Web or use applications.

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