Consumer-electronics giant has reportedly talked about new service with Comcast
SAN FRANCISCO (MarketWatch) — Apple Inc. proved to be a rare gainer in
the tech sector Monday following reports that the consumer-electronics
gains has had talks about a new streaming TV service involving a
partnership with Comcast Corp.
Apple
AAPL
+1.19%
rose 1.2% to close at $539.19 a share after The Wall Street Journal reported late Sunday
that Apple is discussing with Comcast
CMCSA
+0.60%
the development of a streaming TV service that would use an Apple
set-top box and receive special carriage treatment on Comcast’s
broadband network. The gist of the partnership, if it comes to pass,
would allow Apple’s service to receive better delivery to consumers
using the Apple set-top box.
The Journal said Apple wants to offer the ability to stream both live
and on-demand TV programs as well as shows that have been stored in a
cloud environment. The talks are said to be far from reaching a
conclusion or agreement.
Apple currently offers its Apple TV set-top box, which lets users buy or
rent movies, and purchase TV show episodes via iTunes. It also allows
access to streaming services such as Hulu, Major League Baseball, HBO
and Netflix.
For its part, Netflix
NFLX
-6.67%
saw its shares fall 6.7% to close Monday at $378.90 in the wake of the Journal report on Apple and Comcast. Netflix recently reached a deal with Comcast that
allows Netflix to connect its service directly to Comcast’s broadband
network in order to provide a better viewing experience for its
subscribers.
Last week, Netflix Chief Executive Reed Hastings released a blog post
in which he called for a revamp of the so-called “net-neutrality” rules
that would allow content providers like Netflix to be able to connect to
broadband networks for free. On Friday, AT&T Inc. senior executive vice president Jim Cicconi
countered Hastings’ argument by saying “As we all know, there is no
free lunch, and there’s also no cost-free delivery of streaming movies.
Someone has to pay that cost.”
Another notable decliner Monday was Internet radio company Pandora Media Inc.
P
-7.70%
, which fell almost 8% to $31.39 a share. The music publication
Billboard reported that Apple is considering launching an iTunes app that would work with Google’s Android-based mobile devices.
Nearly every other tech-sector leader was in the red. Losses came from Amazon.com Inc.
AMZN
-2.43%
, Microsoft Corp.
MSFT
+0.85%
, eBay Inc.
EBAY
-0.74%
, Intel Corp.
INTC
-0.20%
and Yahoo Inc.
YHOO
-3.32%
.
The Nasdaq Composite Index
COMP
-1.18%
pulled back from its session-low point, but still closed with a loss of 50 points at 4,226.
