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Time Warner Cable (NYSE: TWC) has begun beta-testing a new product that will bring consumers cable television without the traditional cable box.

The service, which was first reported by Engadget, will stream through a Roku 3 box (though it may work with other devices down the line). Basically, the new product is a way to offer Internet-only customers a slimmed-down television package, similar to DISH Network's (NASDAQ: DISH) Sling TV, which delivers customers roughly 20 live-streaming cable channels for $20 a month.

Exactly what channels will be offered with TWC's proposed service has not been released, but Engadget offered details on how it will be priced:

On top of their Internet service, customers can pick up a "Starter" TV package for an extra $10 per month. Another option that adds Showtime and Starz will be available for $20 per month, and for those who want all the usual channels but without a cable box, a Standard option with Showtime and Starz costs $50 per month. Judging by the usual cable packages, Starter customers should have about 20 channels, while the Standard package has more than 70.

Of course, the major difference between the Time Warner Cable and DISH offerings is that it would be bundled with Internet service. That adds a bit of convenience and might be attractive for existing Time Warner Cable customers looking to cut the cord without giving up pay-TV entirely.

Why is Time Warner Cable doing this?
The company knows it is going to lose customers to cord cutting, and this is a way to keep them in the fold. It makes sense for the cable company to offer a competing package to DISH Network's Sling TV and other upstart services.

It's a challenge, however, to deliver a package that offers good value for cord cutters - people who would have otherwise left - without creating one that entices people who weren't thinking about leaving. This is a defensive move, but it could also cannibalize current, profitable pay-TV subscribers looking for an easy way to reduce their bill.

Your cable company doesn't want you to know this
Cable is dying. And there are three stocks that are poised to explode when this faltering $2.2 trillion industry finally bites the dust. Just like newspaper publishers, telephone utilities, stockbrokers, record companies, bookstores, travel agencies, and big-box retailers did when the Internet swept away their business models. And when cable falters, you don't want to miss out on these three companies that are positioned to benefit. Click here for their names.

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