For instance, it strikes me kinda funny -- and should strike you the same -- when Peter Kafka at All Things D contends that Hulu's "new plan" is to compete with Netflix (NFLX) and Amazon.com (AMZN) before asking, with a sort of blissful ignorance, how the company plans to pay for it. Kafka claims to have a source -- he defines it as "someone who knows" -- but this person absolutely cannot be high-level. If they are, he's only getting the basic information he reports, but, clearly, very little to inform his understanding of the situation.
There's a major misconception about how big media television executives view Netflix. They do not view it as a threat. Because, if they did, they would turn Hulu into the ideal one-stop shop for all content -- nostalgia, catch-up programming and first-run/live television -- tomorrow. Such a move, even if only slightly less halfhearted than it already is, would put an almost-instant kibosh on Netflix.
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