March 24 Netflix shares slumped more
than 7 percent on Monday after a report about a new television
streaming product that Comcast and Apple were
working on together.
Netflix shares fell $31.49 or 7.78 percent to $374.67. The
drop came a day after a story that first appeared in the online
edition of The Wall Street Journal said Comcast and Apple were
in talks about teaming up for a new TV product that stores
programming in the cloud and would replace clunky cable boxes in
people's homes [ID: nL4N0ML0G2].
Apple and Comcast have declined to comment on the report but
a source familiar with the matter told Reuters the discussions
were at an early stage and there are a lot of hurdles to be
crossed before any agreement is reached.
Apple also wants the TV service's Internet traffic to be
separate from public Internet traffic and would be looking for
special treatment from Comcast's cable pipe to give customers a
better experience, the newspaper said.
Arris Group Inc, a company that makes set-top boxes
for the cable industry and paid Google $2.35 billion for
Motorola's cable box unit last April, also saw its shares fall 6
percent on fears that an Apple-Comcast partnership could hurt
sales of traditional set-top boxes.
(Reporting by Liana B. Baker; Editing by Tom Brown)