I love Netflix. I have been a happy subscriber of the service for a long time. I am very impressed with their execution. Their streaming experience is pretty good and the selection has been steadily increasing. We stream Netflix movies directly on our TV using Wii. I really like their new app for iphone and ipod touch. They are profitable, growing nicely and generally kicking ass.
I also like Hulu. They offer a useful service and nice viewing experience. But their selection can be a lot better. They are struggling to find a sustainable business model. They are owned by major networks, and in spite (no, ironically, because) of that they seem to have major restrictions on what they can carry and how and where they can be played. Networks are worried about Hulu cannibalizing their revenues and therefore suffocating it.
How come Netflix seem to negotiate these tricky licensing deals much better than Hulu? It’s called Leverage. Netflix is making boat loads of money while Hulu doesn’t. That makes all the difference in the tale of these two companies.