Apple is in negotiations to carry Time Warner’s HBO GO app on its Apple TV by mid-2013, say two people familiar with the matter. Apple’s $99 set-top device already streams content from Netflix and Hulu Plus. With the addition of HBO GO, the STB could better compete with video-delivery devices such as Roku and Microsoft Xbox (which already have the HBO service).

“Cable and satellite subscribers who pay for HBO will be able to watch 1,700 films and television shows on Apple TV, said the people, who asked not to be identified because the talks are private,” according to Bloomberg.

“HBO GO is only available to customers who subscribe to the network through their cable or satellite service, and would be the first app on Apple TV that requires pay TV authentication,” notes the article. “There are currently HBO GO apps for the iPad and iPhone.”

Apple has sold more than 9.8 million set-top boxes over the two prior fiscal years and the most recent fiscal quarter, which has fueled speculation that the company is developing a full television.

“This is an area of intense interest for us,” said CEO Tim Cook during Apple’s first-quarter earnings call on January 23. “I tend to believe that there’s a lot we can contribute in this space. And so we continue to pull the string and see where it leads us.”