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A report in The Wall Street Journal (subscription required) claims that Apple is in talks with Comcast over a new TV streaming service that the Cupertino giant has been developing in secret.
The discussions with Comcast will aim to ink a deal that will see data traffic from Apple's yet unannounced streaming service given priority treatment in the 'last mile', perhaps the first major deal to trample on the net neutrality principle.
By giving preferential treatment to Apple's streaming service, rivals such as Netflix would be at a disadvantage when it comes to their Comcast subscribing customers getting the best possible performance.
This latest revelation may go some way to explain why Netflix's CEO Reed Hastings last week took time out to call for stronger government action on regulating net neutrality.
Apple has so far stayed away from the fast expanding all-you-can-eat subscription video on-demand business, leaving the market place to be contested by Netflix, Amazon and Hulu. Apple's entrance into the SVOD space could shake up the marketplace and pose a serious threat to Netflix, who is currently in a very dominant position.
Netflix shares dropped 8% on the news, while Apple shares rose 1.22% during the same period.
Apple and Comcast both declined to comment on the WSJ report.
The discussions with Comcast will aim to ink a deal that will see data traffic from Apple's yet unannounced streaming service given priority treatment in the 'last mile', perhaps the first major deal to trample on the net neutrality principle.
By giving preferential treatment to Apple's streaming service, rivals such as Netflix would be at a disadvantage when it comes to their Comcast subscribing customers getting the best possible performance.
This latest revelation may go some way to explain why Netflix's CEO Reed Hastings last week took time out to call for stronger government action on regulating net neutrality.
Apple has so far stayed away from the fast expanding all-you-can-eat subscription video on-demand business, leaving the market place to be contested by Netflix, Amazon and Hulu. Apple's entrance into the SVOD space could shake up the marketplace and pose a serious threat to Netflix, who is currently in a very dominant position.
Netflix shares dropped 8% on the news, while Apple shares rose 1.22% during the same period.
Apple and Comcast both declined to comment on the WSJ report.