& cplSiteName &

Apple, Comcast in Streaming TV Talks – Report

Ray Le Maistre
3/24/2014
50%
50%

Apple is talking to Comcast about a partnership that would deliver a video streaming service to Apple TV users at guaranteed quality levels over the cable company's vast broadband network, according to a Wall Street Journal report.

According to the report, Apple Inc. (Nasdaq: AAPL) is keen to guarantee a high-quality live and on-demand TV/video service to those who buy its tiny set-top box, and can't rely on the best-effort nature of the public Internet. As a result, it is in talks to secure a guaranteed quality of service from Comcast Corp. (Nasdaq: CMCSA, CMCSK), which provides its cable services to more than 21 million US households.

The move is interesting for a number of reasons.

Apple has previously held similar talks with Time Warner Cable Inc. (NYSE: TWC), which is set to be acquired by Comcast. (See Is Apple TV the New Cable Channel?, Comcast Strikes $45B Deal for TWC, and Comcast-TWC Deal: Playing All the Numbers.)

Comcast has previously been somewhat reluctant to team up with the OTT players, so these talks signify a change in attitude for the cable giant.

The rumors also come as Netflix CEO CEO Reed Hastings calls for tighter net neutrality rules to protect US Internet video providers against the "tolls" imposed by large ISPs for service delivery interconnections with broadband networks. (See Netflix CEO Wants 'Strong' Net Neutrality .)

Deals between OTT players, such as Netflix and Apple, and the communication service providers (CSPs) are becoming increasingly popular, and hove proven successful for both parties in markets such as the UK, where Virgin Media Inc. (Nasdaq: VMED) was the first to offer the BBC's iPlayer service over its network and now offers Netflix as a dedicated channel to its cable customers with TiVo Inc. (Nasdaq: TIVO)-integrated cable boxes. (See Netflix to Spend Big, Strike Cable Deals in 2014 and Top European MSOs Embrace Next-Gen Video.)

— Ray Le Maistre, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profile, Editor-in-Chief, Light Reading

(15)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Page 1 / 2   >   >>
pcharles09
50%
50%
pcharles09,
User Rank: Light Beer
3/27/2014 | 10:45:02 PM
Re: What's it worth
It's almost funny when you think about it. It seems like the phone & OS providers are the ones who control the market.
sam masud
50%
50%
sam masud,
User Rank: Light Sabre
3/25/2014 | 3:08:41 PM
What's next?
Today it's ISP like Comcast striking deals on OTT video, but what's next? Admittedly, OTT tv is different because it's a bandwidth bog, but will the attention of Comcast next turn to other content providers (on-line multiplayer video gaming, maybe) whose sites prove to be popular with subscribers...
Joe Stanganelli
50%
50%
Joe Stanganelli,
User Rank: Light Sabre
3/25/2014 | 11:26:21 AM
Re: What's it worth
And as for what Comcast gets out of the deal?  Presumably the clout to take on -- and throttle -- Google/YouTube, with a behemoth like Apple in its corner.
Ariella
50%
50%
Ariella,
User Rank: Light Sabre
3/25/2014 | 7:10:26 AM
Re: What's it worth
@Pcharles09 I was thinking the exact same thing. In terms of world domination, two brands stands out: Google and Apple. 
pcharles09
50%
50%
pcharles09,
User Rank: Light Beer
3/24/2014 | 9:25:01 PM
Re: What's it worth
Comcast is trying to take over the world huh. What better partner to cozy up with than Apple. I guess Google was probably a close 2nd.
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
3/24/2014 | 5:35:45 PM
Re: What's it worth
Even if Apple does build its own CDN, it needs to make it through that last mile to customers. That's where Comcast comes in. 
ScottEStewart0101
50%
50%
ScottEStewart0101,
User Rank: Lightning
3/24/2014 | 1:51:48 PM
Re: What's it worth
Like everything else that is spoken about Apple, this is purely speculation at this point. The article on WSJ doesn't name anyone in particular as a source. As to what this could mean, It "could" mean that Apple will get special treatment or QOS service for apple store traffic. OR - it could mean that Comcast is willing to allow AppleTV as a second set-top box, like the digital deals with Microsoft xBox360. The traffic issue on data caps would be dependent on the FCC/DOJ actually stepping in, which they currently have not, in any of these attempts to add what the tech community amounts to as a "troll toll". 

What will get consumers riled up will be if ONLY Apple 1st party content will be exempt from caps, but non-apple content running on the AppleTV device counts against the cap. (such as NetFlix/Hulu). At that point, Comcast could pull the rug out from under customer's feet and drop everyone's data caps down to 10-20Gb and say "use our partnered services, or pay 10$ overages". 
dwx
50%
50%
dwx,
User Rank: Light Sabre
3/24/2014 | 1:16:53 PM
Re: What's it worth
There has been a longstanding I believe well-founded rumor Apple is building its own network/CDN ala Netflix.   My guess is if they reach some kind of deal and there won't be any transit/interconnection costs on either side.  The reality is Apple is still a pretty small player overall mainly due to the pay-per-view rather than a subscription model.  

I think this is very different from Comcast/Netflix.  If Apple is striking a deal to not affect bandwidth caps or get preferential service on Comcast's access network, that is going to start ringing Net Neutrality bells.   That type of setup is currently flying with ATT and its mobile networks, but I don't think the FCC long-term is going to allow it for home ISPs.  

 

 
Duh!
50%
50%
Duh!,
User Rank: Light Sabre
3/24/2014 | 12:02:53 PM
Re: Bandwidth transparency
Mari,

Good question. 

From an engineering perspective, I can think of at least three ways to keep a statistical floor on Best Effort performance in a DOCSIS serving group. 

From a regulatory perspective, the FCC would have to make Rules for Best Effort service performance.   Those would depend upon how much DC Circuit will let them  torture Sec. 706 of the Communications Act. 
Russo0
50%
50%
Russo0,
User Rank: Light Beer
3/24/2014 | 10:46:36 AM
What's it worth
What's it worth?   For transacational service like buying TV show on Apple TV, how about 10%?

$2.99 a 30 minute HD (~24 minute) show that $0.30 @ 2mbps ~ > $20 / mbps /month (assuming some # hours peak per day x 30 days)

But transit rates are < $1/mbps / month

OK, so 10% is too much....termination BW will cost a lot more, but that much more?

It's interesting to compare this Apple deal to the Comcast - Netflix.

 Comcast and Netflix have likely done a bulk deal....But Netflix is effectively buying QOS as well.   Sure Apple it says Apple will pay for QOS, but if Netflix is deliverying data up to Comcast's door, and Comcast is now accepting this traffic, effectively Netflix is purchasing QOS as well, as Comcast is not going to allow Netflix traffice to swamp their internal network.....

 
Page 1 / 2   >   >>
From The Founder
Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Custom TV
What WTTX Can Deliver

2|23|17   |     |   (0) comments


Mohamed Madkour explains the benefits of WTTX while Dimitris Mavrakis discusses the challenges of delivering home broadband access.
LRTV Custom TV
Huawei on Mobile Broadband

2|23|17   |     |   (0) comments


Mohamed Madkour shares his vision on MBB for the next three years.
LRTV Custom TV
Analysys Mason Talks About the Future of Digital Operations

2|23|17   |     |   (0) comments


The future of digital operations has three key aspects: 1. Highly automated operations for both service and network; 2. Highly converged BSS/OSS for business and resources; 3. Highly merged management and control for real-time cloud native operations.
LRTV Interviews
Software Trends in the Telecom Sector

2|23|17   |   03:40   |   (0) comments


Heavy Reading senior analyst James Crawshaw talks with Telecoms.com Editorial Director Scott Bicheno about trends and developments in the telecoms software sector and what to expect at MWC 2017.
LRTV Custom TV
Huawei's Pre-MWC Analyst Briefing 2017 Highlights

2|22|17   |     |   (0) comments


Huawei shares its vision for this year's MWC.
LRTV Interviews
MWC17: 5G, Cloud RAN & More

2|21|17   |   04:35   |   (0) comments


Ovum Senior Analyst Julian Bright talks to Scott Bicheno from Telecoms.com about all things MWC, including Cloud RAN, Huawei's pitch to the industry and the road to 5G.
LRTV Interviews
MWC 2017's Key 2-Letter Terms

2|20|17   |   08:29   |   (1) comment


5G, AI, VR... these are just some of the two-letter terms that will dominate show-floor chat at MWC 2017 in Barcelona, according to these two blow-hards (a.k.a. Scott Bicheno of Telecoms.com and Light Reading's Ray Le Maistre). And then there's PB...
LRTV Interviews
Key Trends for Mobile Operators in Developing Markets

2|20|17   |   06:37   |   (0) comments


Ovum's Matthew Reed talks to Scott Bicheno from Telecoms.com about the challenges and opportunities facing mobile operators in the developing markets of Africa and the Middle East.
LRTV Documentaries
YouTube Takes on Facebook Live-Streaming

2|17|17   |     |   (0) comments


Popular 'YouTubers' will be the first to get the new service on their smartphones. You have been warned.
LRTV Custom TV
Open Source NFV/SDN Automation

2|17|17   |   05:54   |   (0) comments


AT&T ECOMP (Enhanced Control, Orchestration, Management and Policy) code is transitioning into the Linux Foundation for placement into open source. In this video, Carol Wilson provides an update on the maturation of open source ECOMP and meets with industry leaders from AT&T, Bell Canada, Orange, Linux Foundation and Amdocs to discuss what this means for the ...
LRTV Documentaries
Uber & NASA Collaborate on Flying Car Project

2|16|17   |     |   (0) comments


Is Uber for real? Well, it's hired NASA engineer Mark Moore to lead the project, and he wouldn't come cheap.
LRTV Documentaries
Zuckerberg Tries Out the Oculus Rift VR Glove

2|15|17   |     |   (0) comments


Facebook CEO shows off a new way to interact with the Oculus Rift virtual reality headset: an Oculus glove.
Upcoming Live Events
March 21-22, 2017, The Curtis Hotel, Denver, CO
March 22, 2017, The Curtis Hotel, Denver, CO
March 22, 2017, The Curtis Hotel, Denver, CO
May 15-17, 2017, Austin Convention Center, Austin, TX
May 15, 2017, Austin Convention Center - Austin, TX
June 6, 2017, The Joule Hotel, Dallas, TX
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Uber's HR Nightmare: Company Investigates Sexual Harassment Claims
Sarah Thomas, Director, Women in Comms, 2/21/2017
Broadband Has a Problem on the Pole
Mari Silbey, Senior Editor, Cable/Video, 2/21/2017
Verizon to Start Fixed 5G Customer Trials in April
Dan Jones, Mobile Editor, 2/22/2017
Sprint to Go Gigabit Crazy at MWC!
Dan Jones, Mobile Editor, 2/22/2017
MANO Marriage: ECOMP, Open-O Converge as ONAP
Carol Wilson, Editor-at-large, 2/23/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Light Reading founder and CEO Steve Saunders chats with Sportlogiq CEO Craig Buntin about sports data analysis.
Eyal Waldman, CEO of Mellanox Technologies, speaks to Steve Saunders, CEO of Light Reading, for an exclusive interview about the 100 GB cable challenge, cybersecurity and much more.
Animals with Phones
No One Likes This Click Here
Take a hint!
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.