Hulu has a major problem now that Netflix has sealed a deal with the folks over at Disney. The deal gives Netflix more muscle in their distribution of new movies and TV content. The deal which cost Netflix $200 million to seal the deal, shows the commitment that Netflix has placed on their streaming business. The question now is can Hulu with their limited resource continue with their fee based program?

Having used both the fee based Hulu, which I tried for a 30 day free trial and Netflix streaming both using Roku, I canceled Hulu. I replied to their survey of why I was canceling the service. There were just to many freeze ups and stutters when watching their content. With Netflix the streaming is flawless.

In one recent article it states that:

In the latest of several eye-popping deals over the past several months, Netflix is acquiring hundreds of episodes of current and older shows for its streaming service.

Disney is contributing every episode of “Lost” and “Ugly Betty,” along with in-season shows from its two cable channels ABC Family and the Disney Channel, albeit on a 15-day delay, along with the back catalog.

Terms were not disclosed, but the Los Angeles Times reported the deal is worth $200 million.

The latest development broadens an earlier agreement with Disney, but runs counter to expectations that Hollywood is inclined to make it tougher for Netflix to get its hands on more content.

The Disney deal was announced just weeks after NBC Universal made a similar agreement to offer the service old episodes of “SNL” for the next three years — as well as access to its entire back catalog.

I believe that the biggest advantage that Netflix has is their built-in user base of consumers. Those of us who already have a Netflix account see the added streaming feature as a great benefit. Even though Netflix raised their subscription fee for one movie at a time to $9.99 a month, it is still a bargain when you add in streaming. Also Netflix offers a streaming only package for the same price as Hulu at $7.99 a month.

Another benefit that Netflix has is name recognition. Mention Netflix to just about anyone and they recognize the name. Mention Hulu and few know about the new kid on the block. Also, Netflix has a larger offering of movies and TV programs for streaming than does Hulu.

Comments welcome.

Source – NY Post