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Apple wants fast internet for TV content
2014-03-26  CNTV, March 26, 2014

 

Tech giant Apple wants a bite out of the TV market. It aims to make TV content reach consumers faster by signing a deal with U.S. cable firm Comcast. But questions are emerging.

Talk of an Apple-Comcast streaming TV deal brings up new questions about how fast, and at what quality, media gets to consumers. Apple wants to make sure its content gets special treatment from Comcast as part of the deal, according to the Wall Street Journal.

Apple wants to avoid congestion and keep its traffic separate from public internet traffic. Eric Smith of Strategy Analytic says what Apple is really thinking about is 4K - which requires higher video resolutions and better internet infrastructure.

"My thought is that this is a 4K video play. Apple TV is able to get their new device out in the market, that enables 4K over-the-top video from a traditional pay TV provider. And that would give Apple a big splash into the market and Comcast would be able to tout the fact that it has one of the first 4K ready services," Smith said.

Apple had been in talks for a faster TV set top box with Time Warner Cable, which recently agreed to be bought by Comcast. But, coming on the heels of Comcast's separate deal to let Netflix pay for better internet delivery, the move raises a lot of questions.

"Comcast is obviously trying to get its Time Warner deal approved right now, and one of the things they have been saying is they are really committed to net neutrality. They don't see that changing at all, and as a result it seems really strange timing for them to be doing something that I think is at the edges of net neutrality," said Jan Dawson, Chief Analyst at Jackdaw Research.

Dawson adds that it's not clear why , strategically, Comcast would partner with Apple in this way, given that in this scenario Apple would be a new competitor for its cable business.

"What if we put the cable service from Comcast onto the Apple TV in the rest of the United States, for example, we have all the rights already sewn up. We could provide a national service all of a sudden. We could use the Apple TV box to deliver it to people's television sets. And, we could provide some optimization in the back end and Apple would do the same thing on its part. That makes a lot more sense to me and it wouldn't be competitive to Comcast services today. It would be complementary."

Both Apple and Comcast have declined to comment.

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