Heres Why Time Warner Bought 10% of Hulu


By Motley Fool 

Time Warner (NYSE: TWX) just spent $583 million for a 10% stake in Hulu in large part because the streaming service intends to launch a live-TV cable alternative.

Original partners Comcast (NASDAQ: CMCSA), Disney (NYSE: DIS), and FOX(NASDAQ: FOX)won't be contributing to the original Hulu subscription product. That service offers network content a day after it airs -- a model Time Warner has been critical of. Instead, the company will offer many of its channels including TBS, TNT, and CNN as part of a new live-streaming Hulu service.

Hulu has not shared much information on the product, other than saying it launches next year. On this episode of Industry Focus: Consumer GoodsOpens a New Window.,host Vincent Shen is joined by Fool contributor Daniel Kline to dig into why Time Warner has paid up to be part of a service it has criticized in the past. They also discuss the future of the cable industry and where it's going to go in the next few years.

Check the rest of this story at Fox Business!