Specifically, for about $50 a month, Comcast will sell what amounts to a stand-alone HBO service that includes a handful of local and government channels, broadband, and HBO to Go as well as the full suite of HBO channels.
The deal amounts to an experiment to see if Time Warner can profitably sell HBO as an independent product -- a notion the company has teased for a while now -- while giving Comcast a way to appeal to potential cord-cutters who only want a sliver of the cable pie, Tim says.
Can investors expect Time Warner to disrupt its cable partners and begin selling HBO separately? Would doing so boost the company's profits? Tim answers these questions and more in the video. Please watch now and then leave a comment to let us know what you think.
Change the channel on your stock strategy
Americans reportedly spend nearly 34 hours a week watching television! That's a boon for Netflix, obviously, which is one of the reasons I own the stock. But it isn't the only play on the streamed future of TV. Our analysts give you the details on another business poised to profit in a new free report titled "Will Netflix Own the Future of Television?" To get your free report, just click here now!