& 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
Kicking off BCE 2017, Light Reading founder Steve Saunders lays blame for NFV's slow ramp-up and urges telecom to return to old-fashioned standards building and interoperability.
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.
Women in Comms Introduction Videos
Infinera's Sales Director Paints Tech's Big Picture

6|21|17   |   4:14   |   (1) comment


Shannon Williams, Infinera's director of sales, shares how she achieves work's many balancing acts -- between her role and the broader company, today and tomorrow's tech and more.
LRTV Custom TV
SD-WAN Innovation & Trends

6|20|17   |     |   (0) comments


Versa CEO Kelly Ahuja discusses with Carol Wilson the current status and trends in the SD-WAN market, Versa's innovation around building a software platform with broad contextualization, and the advantages that startups can bring to the SD-WAN market.
LRTV Interviews
Ovum's Dario Talmesio on 5G in Europe

6|20|17   |   02:16   |   (0) comments


At 5G World 2017, Dario Talmesio, principal analyst and practice leader on Ovum's fixed and mobile telecoms European team, explains the emerging trends amongst European operators as they prepare for 5G.
LRTV Custom TV
Putting Power on a Pedestal

6|19|17   |     |   (0) comments


ARRIS's John Ulm says a major accomplishment of SCTE•ISBE's Energy 2020 program is increased focus on power cost and consumption, including inclusion of energy requirements in operators' RFPs and RFIs.
LRTV Custom TV
Gigabit Access: The Last-Mile Pipe for All Future Services

6|19|17   |     |   (0) comments


A Gigabit access platform being deployed today must be able to deliver all types of services to an increasing number of devices. A non-blocking architecture is necessary to support the ever-increasing growth in bandwidth demand. The Huawei Gigabit access solution is based on a distributed design that is fully scalable to deliver a unprecedented performance.
LRTV Custom TV
Key Factors to Successfully Deploy an SD-WAN Service

6|19|17   |     |   (0) comments


As service providers transition their SD-WAN solution from trials and limited deployments into production at large scale, there are important considerations to successfully operationalize these solutions and realize their full potential, without adding complexity, introducing uncertainty or disrupting current business operations. Sunil Khandekar, CEO and Founder ...
LRTV Custom TV
IoT Solutions: Rational Exuberance

6|19|17   |     |   (0) comments


IoT solutions are morphing from hype into viable business opportunities. Huawei has the platform and ecosystem support to help carriers successfully address new business opportunities in the IoT space.
LRTV Custom TV
Realizing ICN as a Network Slice for Mobile Data Distribution

6|19|17   |     |   (1) comment


Network slicing in 5G allows the potential introduction of new network architectures such as Information-centric Networks (ICN) as a slice, managed over a shared pool of compute, storage and bandwidth resource. Services over an ICN slice can benefit from many architectural features such as Name Based Networking, Security, Multicasting, Multi-homing, Mobility, ...
LRTV Interviews
Ovum's Mike Roberts on 5G Uptake

6|19|17   |   04:08   |   (0) comments


Mike Roberts, research director for Ovum's service provider markets group, explains why he has boosted his 5G subscriptions forecast.
LRTV Interviews
AT&T's Hubbard on Intersection of SD-WAN & MPLS

6|15|17   |     |   (0) comments


Rick Hubbard, SVP of Network Product Management for AT&T Business Solutions, discusses how AT&T's approach to SD-WAN fits in with its overall virtualization strategy, explains how SD-WAN can improve enterprise customers' use of the cloud and addresses the intersection of SD-WAN and MPLS.
Telecom Innovators Video Showcase
Keep Connected IoT Devices Under Control With Allot

6|15|17   |     |   (0) comments


Allot AVP of International Pre-Sales, Daniel Keidar, explains how communications service providers can protect infrastructure and service availability from flooding attacks caused by malfunctioning or bot-infected devices connected to their network.
LRTV Custom TV
ZTE 5G World Highlights

6|15|17   |     |   (0) comments


ZTE showcases its leading 5G innovations at 5G World in London.
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
Verizon Warns of $500M Hit From Yahoo Deal
Iain Morris, News Editor, 6/16/2017
Netflix's Lesson in Culture Expectation Settings
Sarah Thomas, Director, Women in Comms, 6/21/2017
Can Comcast Beat Customer Hate With a Private Cloud?
Mitch Wagner, Editor, Enterprise Cloud, 6/15/2017
Kalanick Steps Down as Uber CEO
Sarah Thomas, Director, Women in Comms, 6/21/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Following a recent board meeting, the New IP Agency (NIA) has a new strategy to help accelerate the adoption of NFV capabilities, explains the Agency's Founder and Secretary, Steve Saunders.
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
Animals with Phones
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.