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Netflix Takes On Hulu

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Netflix, a subscription service that provides movies and TV show seasons (generally after they have been released to the pubic), has been expanding its market by branching out from DVDs sent by mail to movies streaming online to movies streaming on your TV instantly, as long as you have a wireless connection device such as a PlayStation, XBox, Apple TV, or certain Blu-Ray Disc players. Now it’s stepping onto Hulu’s territory.

Executives at Hulu last month, according to Mike Shields of MediaWeek.com, “were fuming over NBCU’s decision to offer episodes of Saturday Night Live via the Netflix Web service the day after they air.” Hulu is generally the go-to site for catching up on your shows you may have missed during the week. Most major networks work in partnership with Netflix, but generally they do not allow the streaming of shows during their current seasons. The deal NBCU made with Netflix over SNL may encourage other networks to do the same, making Hulu obsolete for Netflix’s 17 million subscribers.

Hulu does have income, though they have to split it among all of their partners, including ABC, NBC, and Fox. Netflix already began pressuring Hulu by offering a $1 billion deal with Epix, a TV service owned by Paramount, Lionsgate, and MGM. Hulu receives pressure on the other side from cable companies, who do not like that Hulu’s free viewing contradicts their opposition to cord cutting.

Insiders in the industry are convinced that Hulu will eventually fold, becoming victim to Netflix and other on-demand providers.

http://www.mediaweek.com/mw/content_display/news/digital-downloads/broadband/e3ic1904d9b2e94022aa1391e63f353102e?pn=1                                                                     http://www.digitaltrends.com/wp-content/uploads/2010/06/hulu-plus-netflix-650×346.jpg

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Written by brennamckinley

December 1, 2010 at 2:48 am

Posted in Uncategorized

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