NEW YORK (TheStreet) -- Apple  (AAPL) is said to be in talks with Comcast  (CMCSA) about developing a streaming-television service using an Apple set-top box.

VIDEO TRANSCRIPT:

Apple is reportedly in talks with Comcast about developing a streaming-television service using an Apple set-top box.

The Wall Street Journal reports that Apple plans to allow users to stream live and on-demand programming stored in cloud servers.  The report says that Apple wants its new TV service's traffic to be separated from public Internet traffic in the heavily used portion of cable pipes that connect to customers' homes, ensuring faster service.

According to the report, Apple and Comcast are not yet close to an agreement, as Comcast would have to make significant investments in network equipments and technology in order to be able to deliver what Apple wants.

In a sign that content providers may have to pay up for better service, Netflix (NFLX) agreed last month to pay Comcast for faster speeds.

At last check, shares of Apple were climbing more than 1% to $539.15.

In New York, I'm Brittany Umar for TheStreet.

-- Written by Brittany Umar in New York.


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