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Apple after Time Warner cable TV deal

AppletvApple is approaching Time Warner for a deal that would make available channels of the TV service to Apple TV users. People familiar with the matter noted that companies plan to announce a deal till next few months as negotiation talks are still made in private.

The iPhone creator is also appointing Pete Distad from online-video service Hulu LLC, where he was senior vice president in charge of marketing and distribution, to help Apple executives in negotiations with media and cable companies, two people with familiar with the matter said to Bloomberg.

The potential deal with Time Warner shows more about Apple intentions to work within the existing pay-TV business model, rather than directly offering live TV programming. Media and entertainment companies that own television shows and movies have been opposing to selling their products directly online because it could harm sales from cable and satellite operators.

As Apple is more interested in pay TV services, Intel Corp. which is negotiating with media companies to build an Internet-based service that would compete more directly with cable and satellite companies.

Time Warner Cable has signed similar deals to make programming available through Roku’s online TV device and the Xbox gaming console which also offers TV services. The second-largest U.S. cable provider stated last month it would start making programming available for some televisions made by Samsung Electronics Co. The company serves devices such as iPhone and iPad through its TWC TV application.

Tim Cook, Apple’s CEO, said in May that more than 13 million Apple TVs have been sold since the release of the device on the market. Television is an area of “intense interest” to Apple, according to the CEO.

“When you look at the TV experience, it’s not an experience that I think very many people love,” Cook said at the D: All Things Digital technology conference. “It’s not one that has been brought up to date for this decade. It’s still an experience much like 10 years ago or 20 years ago.”

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