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Hulu, Netflix Only Make Cable TV Stronger

Stocks in this article: NFLX DIS NWSA TWX DTV AMZN AAPL

Why end this gravy train if you don't have to? As long as content stays concentrated in a relatively small number of entrenched hands, the old guard media conglomerates, particularly the ones with premium sports programming, have no incentive to change.

It's a sweet deal. Not only do they profit from this closed model, but they're able to take less attractive content or reruns of shows that need a push and sell them for millions to anybody from Netflix (NFLX), Amazon.com (AMZN) and Apple (AAPL). But they never give them enough to do what they really want to do or achieve anything close to total domination in the living room. If you pay attention to the libraries and experiences of Netflix, Amazon and Apple, this much is obvious.

That's why the deal Netflix cut with Disney made me curious. I have to think that's an anomaly or Disney just doesn't think Netflix will survive long enough to see first-run films in 2016.

So, that's it. It might not be fair, but it's simple. And, at the end of the day, consumers are helpless. That includes me. I give DIRECTV (DTV) $64.98 a month on a two-year contract, plus $179 a year for NHL Centre Ice.

When I was a wee child back in the 1980s (bam!), I remember my mother screaming at the rotten cable company on the phone. She still complains when they raise prices or make her "lease" a new set-top box. Same story for the past 35-40 years. Hasn't changed a bit.

Hulu was our best chance to change things. It was the bleeding heart liberal of the 1960s Robert F. Kennedy! If you're counting on Netflix to incite hope and change, you better not hold your breath or cut your cord. An extinct Hulu and a shaky Netflix only makes cable that much stronger.

--Written by Rocco Pendola in Santa Monica, Calif.

Rocco Pendola is TheStreet's Director of Social Media. Pendola's daily contributions to TheStreet frequently appear on CNBC and at various top online properties, such as Forbes.
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