Maybe this will go through Time Warner Inc. has

Maybe this will go through Time Warner Inc. has to find places to distribute its content.

“But they don’t have their own distribution systems. They don’t own their own movie theaters anymore. They don’t own TV stations anymore.”

So Time Warner Inc. has to find places to distribute its content. Shows and movies on networks like CNN and HBO. Thus, says Jasso, the deal with Hulu. Hulu’s new service is one more place.

“The way to think about it right now," Neil Macker said, an equity analyst with Morningstar, "is that Hulu and the service that they’re going to be offering next year is going to be replacing your pay TV subscription."

Hulu will sell you a bundle which could include options like ESPN, ABC and content from Time Warner.

“The way the business is evolving – a lot of competitors are becoming partners and vice versa," Paul Verna said, a senior analyst with market research firm eMarketer. "Hulu does compete with Time Warner in the sense that they are taking viewers away from cable services, which is where Time Warner’s biggest revenues come from."