Hulu follows the freemium model, with content some content on its site being free and charging people to use HuluPlus – to offer more content and possibly quicker access to programming for its paid viewers. Though the case points out “TV Everywhere” as a competitor, I think the online streaming business of Netflix has good potential to give Hulu a run for its money. Netflix charges a minimal fee for online streaming and it is commercial free. Though Hulu has more current content, I think Netflix will ramp up its database for online streaming. Most households already subscribe to cable networks in some form of package offered – though the recession might be cutting into this market making people turn to free tv sites like Hulu, I believe it is a temporary second choice in the market. Netflix aptly bridges the gap by offering online streaming for a reasonable monthly subscription.
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