Is AppleTV set to become a cable box?

There have been a lot of reports of Apple negotiating content deals with the major networks and the possibility of a la carte available via the iTunes store. According to the Wall St Journal, current discussions are centered on Apple producing a fully fledge set top box.

TiVo Inc. currently dominates this sector of the market, but has a miniscule installed base compared to users who are happy to rent a DVR form their cable provider for $10-15 a month. For those looking for a solution outside of their cable operator’s offering, an Apple-based device would be an attractive proposition if it provided the functionality of the current AppleTV. Such a device would allow users to get virtually all of their Cable and OTT content on a single device (and presumably stream wirelessly around the house). The device would also give TiVo a run for their money, especially fi there were no subscription fees on an Apple-branded device.

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