Netflix is making an aggressive play for in-season episodes of hit TV shows to expand its Web streaming service.
The company is in talks with studios about gaining access to current episodes of primetime shows and is willing to pay between $70,000 and $100,000 per episode, according to a person familiar with the matter. Netflix had no comment.
via New York Post
Since Hulu’s biggest difference currently vs. Netflix streaming is that Hulu streams current shows (and Netflix does not) that’s obviously a direct threat to Hulu’s business. Particularly with Hulu working towards an initial public stock offering.
It’s one thing for Hulu’s current owners (NBCU, News Corp (Fox), and Disney (ABC)) to jerk it around on advertising sales and other aspects of its business model. At this point the only revenue trade offs are between the co-owners and Hulu. Once there are public stockholders at the table, it gets a lot more complicated for Hulu.