This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

If Netflix Mattered, Hulu Would Put It Out of Business

NEW YORK ( TheStreet) -- As I read reaction to the dead-again Hulu deal, practically every point that gets made misses the larger, more meaningful one.

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 - Get Report) and (AMZN - Get Report) 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.

Recall who owns and controls Hulu: A consortium of Twenty-First Century Fox (FOX - Get Report), Disney (DIS - Get Report) and NBC Universal, a division of Comcast (CMCSA - Get Report).

These guys could unleash an all-out assault that would put Netflix out of business in an instant. But that would be a kamikaze move that should not happen and does not have to happen anytime soon. There's no need, given the reality that Netflix has little, if any, material impact on the big media establishment, particularly the major content producers. These guys continue to deliver numbers -- ratings and revenue -- hand over fist.

Tech guys like Kafka and media critics such as Bryan Stelter at The New York Times eat up talking points such as Hulu will invest to compete with Netflix or Disney CEO Robert Iger's quotable: The future of Hulu is bright, and if the future of Hulu is bright, then we should hold onto it.

We should stop calling folks who produce this type of story "reporters"; they're "regurgitators."

There's only a shred of truth at the surface of the Hulu will compete with Netflix and Hulu has a bright future talking points.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AMZN $671.32 -1.83%
AMCX $63.76 -3.25%
CBS $55.66 -1.43%
CMCSA $60.95 -0.46%
DIS $103.78 -0.56%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs