The Apple TV, in an undated photo, was the company's...

The Apple TV, in an undated photo, was the company's first step into the set-top market. When it was introduced, the 40GB model sold for $299, the 160GB was available for $399. Credit: Getty Images

Apple had considered building a cable set-top box two years ago but former Chief Executive Steve Jobs did not go ahead with the idea, saying most operators lacked national reach, the sources told the newspaper.

Apple already sells a $99 set-top box called Apple TV that streams Netflix and other content.

It has not been confirmed if the set-top box would use the same hardware as Apple TV or an upgraded box, the newspaper said.

The technology might be embedded in a television, the sources told the Journal.

Apple and Time Warner were not immediately available for comment.

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