For HBO, It's Disrupt or Be Disrupted

HBO's new deal with Comcast (NASDAQ: CMCSA  ) is a disruptive opportunity for Time Warner (NYSE: TWX  ) , Fool contributor Tim Beyers says in the following video.

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.

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  • Report this Comment On November 04, 2013, at 6:08 PM, donax666 wrote:

    I would pay $20 to HBO directly just to use HBOtoGo but noooooooo. Oh well I don't watch their shows anyways

  • Report this Comment On November 05, 2013, at 11:37 AM, Gridlocked wrote:

    HBO, Starz and maybe 15 other channels and I'd be good. No ESPN, Disney or news channels and no shopping or religious channels. Get my locals through Aereo.

    In the next 10 years cable co's will roll out an online a la carte service and actually compete with each other to some extent. Cox will be the 1st.

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