Why The Apple, Comcast Deal Has High Hurdles to Face

Updated from 11:04 a.m. to include thoughts from Barclays analyst in the tenth paragraph.

NEW YORK (TheStreet) -- Any time someone writes the words Apple (AAPL), television, content and service, the media, tech zealots, and investors go nuts. With the latest offering about a potential deal with Comcast (CMCSA) coming down the pipe (pun intended), a bit of caution is warranted here.

Last night, The Wall Street Journal reported Apple is talking to Comcast about a streaming service that would use Apple TV as the set-top box, with the streaming service getting preferential treatment on Comcast's pipes, so as to avoid disruption. This all sounds well and good, except the deal isn't anywhere close to being done, according to the Journal, and there's likely to be major hurdles getting to the finish line.


WATCH: Apple Talks Streaming TV Service with Comcast Using Set-Top Box

Apple, which has started to tout its Apple TV set-top box more publicly in recent months, has made no bones about wanting to change the television experience. CEO Timothy D. Cook has said in the past TV is "an area of intense interest," noting that the experience is like watching television 20 or 30 years ago. At Apple's recent shareholder meeting, Cook noted Apple sold more than $1 billion worth of Apple TV boxes last year, telling investors it was getting more difficult to call it a hobby, which it has been referred to as in the past.

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