Netflix-Disney Deal Puts Pressure on Hulu

6:17 AM PST 12/09/2010 by Georg Szalai

Hulu’s CEO needs to acquire more content or focus on free offerings to compete with Netflix’s expanded services, insiders say.

Netflix’s streaming online video deals for TV shows from Hulu partners Walt Disney, which saw an expansion on Wednesday, and NBC Universal are putting pressure on the joint venture to tweak its business approach, the New York Post said Thursday.

Citing sources, the paper said Hulu CEO Jason Kilar may have to look at acquiring more content to compete with Netflix’s fast-growing streaming service.

The Post, owned by Hulu investor News Corp., also said the online video venture could instead focus on free offerings. However, Hulu management has recently touted the success of its Hulu Plus subscription service.  

"Hulu has to pick its poison," one source told the Post. "It really makes it hard if the Hulu partners are going to license their content like this."

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