At the same time Hulu Plus subscribers received access to 150 Criterion Collection films, the film distributer pulled their titles from the streaming Netflix library. According to Criterion, “Hulu demonstrated a real commitment to the Criterion brand that persuaded us they would be the better home base for our streaming efforts.” They also fault Netflix in not making their titles more visible to users. Criterion “is not even a searchable term [on Netflix],” said Criterion via their Facebook page.
Hulu took a more “pro-active” approach to presenting Criterion Collection films. The online distributer even built a branded section of their site dedicated the film collection, which obviously impressed the Hulu team.
But Netflix may have bigger fish to fry. Netflix has more than double the amount of visitors than Hulu.com (30.8 million vs. 13.7 million according to Compete.com), and HuluPlus subscribers only account for a small percentage of Hulu visitors.
But Hulu Plus users are certainly not relying only on Hulu for content. According to a study by One Touch Intelligence released last fall, of the 4% of Hulu users who subscribe to Hulu Plus, 88% of them are also Netflix subscribers.
Will the loss hurt Netflix? Not likely. Netflix has enough independent titles online to go around, twice. Their real focus should be getting more streaming blockbuster titles (and more in HD), especially in light of the fact that competition from Redbox, Amazon, and possibly Microsoft are looming.