Netflix's stock fell 7% on Monday after a Wall Street Journal report emerged claiming Apple was in talks with Comcast for a TV set-top box release.
Comcast, the country's largest cable operator, is reportedly in discussions with Apple about a set-top box that would allow for special access on Comcast's backend equipment, thus bypassing typical Internet congestion. Though the talks are said to be preliminary, investors see a potential challenge to Netflix's business.
[seealso slug="comcast-time-warner-cable-coverage-map"]
Apple's plans to let users stream live and on-demand TV and store content in the cloud, according to the report. Apple currently offers Netflix's service on its Apple TV devices.
Last week, Netflix CEO Reed Hastings admitted his company paid Comcast because of the lack of strong net neutrality rules. Stronger net neutrality would prevent ISPs like Comcast for "charging a toll for interconnection services," Hastings wrote in a blog post. Hastings added the payment wouldn't cause Netflix to revise its guidance for first quarter.
Despite Monday's dip, Netflix's stock price is up more than 100% over the past year.