The device is expected to go on sale by Christmas, although the timing could change as Apple works on agreements with content and distribution partners, the report said.
The new device would be faster and improve user experience by allowing customers to easily navigate between TV shows, movies and other online content.
A deal between Time Warner Cable and Apple would be beneficial for both. Apple's next TV box would offer customers more TV content, while Time Warner Cable would benefit as it pushes its "TV Everywhere" strategy.
To read the full Bloomberg article, click here.