Apple Inc., Comcast Deal Likely To Engender Further Scrutiny


Yesterday it was reported via the Wall Street Journal that Apple Inc. (NASDAQ:APPL) and Comcast Corporation (NASDAQ:CMCSA) (NASDAQ:CMCSK) planned to work together for a new streaming video service. It would be an Apple TV style box-top set which would also offer access to Comcast’s cable network. Not everyone is happy with the report.

A problem with the Comcast/TWC merger

Just last month, the WSJ claimed Apple Inc. (NASDAQ:APPL) talked to Time Warner Cable Inc (NYSE:TWC) about allowing select programs on Apple TV. The very next day, Comcast announced their buy-up of TWC. This made everyone assume the Apple/TWC deal was no longer in the pipeline.

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Janko Roettgers from GigaOm had a bone to pick with the story. Apple’s purported plan was to utilize Comcast Corporation (NASDAQ:CMCSA) (NASDAQ:CMCSK)’s cable internet and possibly bypass internet slowdowns. This led some critics to call it out as it would violate net neutrality. However, more critics are mad about the merger between Comcast and TWC.

Apple possible plans for future TV Box

It is evident Apple wants to improve the Apple TV box top, this is why the tech giant has been contacting cable companies in hopes to create an improved entertainment box. Since Apple initially talked to Time Warner Cable Inc (NYSE:TWC) about a potential deal, it is easy to see why the company would talk to Comcast about the same matter.

GigaOm added more depth to the story, adding, “Well, not so fast. Comcast has long been the company most concerned about owning the relationship with the customer. For example, Comcast subscribers haven’t been able to access HBO’s HBO Go app on the Roku because the cable company would like customers to go through its own apps instead. And, in all fairness, Comcast is also one of the pay TV operators that has invested the most resources into building next-generation pay TV experiences for its customers, including its X1 set-top-box, its impending cloud DVR and its upcoming X2 platform. It’s unlikely that Comcast executives would feel the need for Apple to build the company a better TV user interface.”

Another possibility could be Apple Inc. (NASDAQ:APPL) wants Comcast Corporation (NASDAQ:CMCSA) (NASDAQ:CMCSK) to treat their service separately from the public internet to keep Apple TV users from experiencing high traffic slowdowns.