In a recent conference call, Netflix CEO Reed Hastings says the Hulu expansion shouldn't be a problem.
The news surrounding Hulu is potentially very exciting. The idea of getting recent episodes of television shows on an iPad, Xbox 360, or whatever other devices Hulu has planned is a cool one. It gets a little less exciting when you start thinking about a 480p video streaming to your TV, but if the price is right, poor quality can be ignored.
It's big news, and it would put Hulu in competition with Netflix on some content. Generally the two co-exist quite well, with Netflix handling back content and Hulu offering up the new stuff. But Hulu's plans to start offering older shows for a fee means consumers will have a choice between the two.
Reed Hastings, CEO of Netflix, isn't too worried about it. "There's the potential emergence of direct competitors (like) Hulu," he says. "We'll see what they do, and potentially others over time ... but the upside is it's a very big market."